Futures on CBOE VIX Index (VIX) surges almost 6% today, after US macro readings came in unfavorable for Wall Street. Firstly, Core PCE data came in higher (both MoM and YoY) than expected, with surging so-called Supercore PCE measure. Secondly, University of Michigan report final indicated to even higher than previous inflation expectations at 4.1% (previously 3.9%) for 5-year and 5% YoY for 1-year CPI ahead (previously 4.9%). All of that suggests that price pressure in the US economy will rise, making Fed even more hawkish, despite softer consumers data. US100 loses almost 2% while US500 slides 1.5%.
Source: xStation5
The US100 failed to rise above EMA200 (the red line) at 20,300 points, and we can see pressure indicating potential retest of the previous lows.
Source: xStation5
VIX rebound after reaching almost 1-month low earlier this week.
Source: xStation5
Shares of Meta Platforms, Tesla, Amazon and Alphabet are the worst BigTech performes today, while Nvidia slides 1.8%. Defensive sectors such as pharmaceuticals and health care providers outperform tech sectors.
Source: xStation5
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