Market Summary - VIX and Wall Street Update
VIX Gains Amid Wall Street Pullback
On July 11, 2025, the CBOE Volatility Index (VIX) saw a significant increase of nearly 4%. This rise comes as Wall Street experiences a slight pullback from its all-time highs, leading to a decrease in market sentiment. The decline in sentiment has resulted in heightened demand for hedging, which in turn has driven the VIX higher. Currently, the US500 index has dropped over 0.6%, settling at the 6280 points level as the market prepares for the upcoming earnings season.
VIX Futures Curve Analysis
The VIX futures curve indicates that contracts with longer maturities, such as those expiring in February 2026, are priced higher than both the spot VIX and near-term contracts like those expiring in July 2025. This pricing structure suggests that market participants expect increased volatility in the coming months. However, this is a typical scenario given the prevailing optimism in the equity market. Following the recent sell-off and the current oversold conditions, the VIX may react sharply, particularly if the downward momentum in U.S. stocks continues.
Market Highlights
- Alphabet Shares: Support sentiments on Wall Street.
- Oil Prices: Dipped below $60 amid EIA report, raising concerns about a potential sell-off.
- Bitcoin: Experienced a decline to $91K despite strong ETF inflows.
- US Grains: Saw a surge due to commodity fund buying, with wheat prices up by 1.5%.