VIX Jumps to April High as 10-Year Yield Nears 5%, Overtaking AI as Market Driver
Updated
Updated · CNBC · Sep 10
VIX Jumps to April High as 10-Year Yield Nears 5%, Overtaking AI as Market Driver
3 articles · Updated · CNBC · Sep 10
Summary
Options traders are dumping broad U.S. equity exposure as the gap between big-tech volatility and index volatility reverses, signaling a shift away from AI-led stock moves.
The turn is tracking a bond selloff that has pushed the 10-year Treasury yield toward 5%, while resurgent inflation, oil above $100 and the Fed's Sept. 16 meeting pull attention back to macro risks.
Volatility in 18 of 19 stocks tracked by Nations Indexes' VolDex fell Thursday, with the end of earnings season and weaker retail options demand draining heat from AI favorites such as Micron.
Energy is replacing tech as the market's leadership group: the XLE energy ETF is up 43% this year, and Thursday's broader equity drop followed an August PPI reading of 0.4% month on month.