Seven-Day VIX Swoon Reaches Chaotic End: What Traders Are Saying
- Nasdaq 100 sinks 3.1% for biggest loss in three weeks
- Spike in Treasury yields, plunge in oil add to concerns
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A two-week stretch of building bliss in the stock market hit a wall Thursday, with measures of volatility surging and traders reassessing their reaction to the Federal Reserve’s promise to hold interest rates near zero for the next three years.
The S&P 500 dropped 1.5% for its worst drop in three weeks and the Nasdaq 100 fell 3.1%, erasing its gain for the year. The moves came as bond yields rose, oil prices plunged on concern about the impact of European lockdowns on demand, and traders braced for the simultaneous expiration of futures and options prices on Friday.