Market Volatility Spikes as Treasury Yields Hit One-Year Highs Amid Rate Hike Fears
Stock market futures fell as Treasury yields jumped to nearly one-year highs following inflation concerns and uncertainty about whether the Fed will raise rates rather than cut them under new Chair Kevin Warsh.
Market Reaction to Inflation Data
Treasury yields hit nearly one-year highs and crude oil rose, stalling the tech rally. The calendar is light, putting focus on rate-hike fears as Kevin Warsh takes over at the Fed.
Volatility Surge
Volatility surged 10% this morning as the Cboe Volatility Index (VIX) topped 19. The S&P 500 Index has pushed into a resistance area in the range of 7,450 to 7,500, while support sits near 7,030. With only about half of stocks above their 50-day moving average, the rally remains somewhat narrow.
Sector Weakness
Chip and AI-related stocks took the other route early Friday, descending ahead of the open after weeks of gains. Some of the names taking a tumble included Marvell Technology (MRVL) off 5%, Intel (INTC) down 4.7%, Arm Holdings (ARM) off 4%, and ASML (ASML) down 4%.