Last week, the CBOE Volatility Index (VIX) saw a sharp rise in its 10-day rate of change indicator, reaching its highest level since April. Analyst Michael Welch from Canaccord Genuity highlighted that in the past two years, whenever this indicator hit the level of 32, the stock market experienced a pullback of 2% to 10%, except for one instance. The VIX, known as Wall Street’s “fear gauge,” provides insight into market volatility.
Looking ahead, the launch of Ether ETFs in the U.S. on Tuesday is anticipated, following the successful debut of bitcoin funds six months ago. Major asset managers like BlackRock, Fidelity, and VanEck, alongside crypto-focused firms such as Bitwise and Grayscale, are preparing to introduce these funds. Despite expectations of lower initial demand compared to bitcoin ETFs, which have garnered over $16 billion in net inflows, the approval of these ether funds signifies the growing integration of crypto assets into the traditional financial system.
After hours trading saw some notable shifts in the market, with companies like Cadence Design Systems, Crown Holdings, and NXP Semiconductors experiencing varying reactions based on their earnings guidance and performance. Overall, stock futures for the Dow, S&P 500, and Nasdaq 100 remained stable, signaling a relatively flat start to the trading day.
Vocabulary List:
- Volatility /ˌvɒl.əˈtɪl.ɪ.ti/ (noun): The tendency to change quickly and unpredictably especially for the worse!
- Indicator /ˈɪn.dɪ.keɪ.tər/ (noun): A sign that shows the state or level of something.
- Anticipated /ænˈtɪs.ɪ.peɪ.tɪd/ (verb/adjective): Expected or predicted.
- Integration /ˌɪn.tɪˈɡreɪ.ʃən/ (noun): The process of combining or incorporating parts into a whole.
- Performing /pərˈfɔːr.mɪŋ/ (verb): Carrying out or executing an action or task.
- Guidance /ˈɡaɪ.dəns/ (noun): Advice or information aimed at resolving a problem or difficulty.
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