Trade Uncertainty Sparks Whipsaw Session: Stock Market Today
Volatility has made a notable appearance in mid-October, a month typically marked by positive stock market events.
Stocks initially opened higher due to strong bank earnings, but volatility soon spiked, causing all three main U.S. equity indexes to briefly decline before recovering in the afternoon.
Market participants remain cautious due to new tariffs and trade war discussions from the White House.
The Cboe Volatility Index (VIX), also known as the market's "fear index," increased to 22.44 from 20.81, rising from 16.43 on October 9. A normal range for the index is between 12 and 20.
Market uncertainty sparked by trade talks.
Author's summary: Volatility affects the stock market due to trade uncertainty.