Connect with us
                               

Cryptocurrency

Volatility Spikes After 7% Dow Drop

Published

on

 

 

Equity index futures are rebounding this morning after Wall Street’s worst day in three months. News of rising coronavirus cases has again stoked fear in the markets and recent comments by the Fed have also shaken trader confidence.

As businesses reopen in the US, a rising number of coronavirus cases has many investors concerned over how the situation might escalate. Additionally, the Federal Reserve warned of a possible long road to economic recovery on Wednesday, decelerating the bullish conviction seen early this month.

VIX on the Rise Again

Dow futures tumbled more than 6.5%, S&P 500 futures fell 5.5% and Nasdaq futures dropped 4.6%, significantly raising market volatility. Having been on a decline since early April, The CBOE Volatility Index (VIX) spiked above 40, reflecting increased anxiety among speculators.

This morning markets look to be bouncing from yesterday’s abrupt selloff:

The chart above shows activity in the VIX since the start of the year. The most widely used indicator of market volatility, the VIX helps reveal both investor sentiment and market risk.

Risk management should remain paramount when speculating unpredictable markets and traders should take appropriate measures to protect investment capital.

Chart and monitor your favorite markets for FREE with the award-winning NinjaTrader platform. Download here and get started with a free futures trading demo today.

 

 

 

Up Next

After Equity-friendly Fed, DAX30 struggling to hold above 12,000

Don't Miss

Dow plunges 1,100 points on Fed outlook! Another 10,000 to go?

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Trending

  • Ideas7 months ago

    5 Investment Ideas on Building Wealth

  • Do you think that price action is the best way to read the financial markets? 6 Do you think that price action is the best way to read the financial markets? 7
    Forex7 months ago

    Do you think that price action is the best way to read the financial markets?

  • Forex7 months ago

    The 2 Kind Of Day traders We have!, Which Group You Fall into?

  • Can You Truly Make A Living Trading Forex? 11
    Forex7 months ago

    Can You Truly Make A Living Trading Forex?