In this way, the VIX went from 18 units on Thursday of last week, to the current 31 units, which represents a shot up of 68%.
The S&P 500 technology index fell sharply on Friday, leading losses among the top 11 sectors. The actions of Tesla, Nvidia, Microsoft and Apple lost between 0.5% and 7%, dragging the Nasdaq.
“In the S&P 500, if you look below the surface, there is a lot of slaughter in tech stocks that were somewhat overvalued and that is what is primarily contributing to the volatility,” said Jamie Cox, managing partner at Harris Financial Group.
From Delphos Investment they indicated that the VIX “remains in a turbulent zone. However, the adjustment experienced by the S&P 500 until Wednesday was similar to those of January, February, May, and September of this year, when the VIX reached over 28 points”.
Anyway, they warned that “this does not remove the possibility of another shock, but, in conjunction with economic dynamics, reinforces the floor zone reading … if the Fed and Covid-19 allow it.”
Source From: Ambito
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