Trade Uncertainty Sparks Whipsaw Session: Stock Market Today
Volatility has increased in mid-October, a month typically marked by positive stock market events.
Stocks initially rose due to strong bank earnings, but then experienced a surge in volatility, causing all three main U.S. equity indexes to briefly decline before recovering in the afternoon.
Market participants remain cautious due to new tariffs and trade war discussions from the White House, leading to a rise in the Cboe Volatility Index (VIX), also known as the market's "fear index," to 22.44 from 20.81 the previous day.
The VIX has increased from 16.43 on October 9, exceeding its normal range of 12-20.
Market participants remain wary of new tariffs and trade war talk from the White House.
Author summary: Volatility rises due to trade uncertainty.