Markets resume rally with blowout Nvidia earnings

The Volatility Index just spiked to 27.34.

That now challenges the peaks the VIX saw in October, in March, and in December 2024. Unfortunately, the VIX could push even higher if the Federal Reserve decides not to cut interest rates at all in December.

For investors wanting to trade the potential for higher volatility, check out these VIX-related ETFs. :

ProShares Ultra VIX Short-Term Futures ETF (UVXY): The ETF was designed to match two times (2x) the daily performance of the S&P 500 VIX Short-Term Futures Index.

iPath S&P 500 VIX Short-Term Futures (VXX): The VXX provides exposure to the S&P 500 VIX Short-Term Futures Index.

ProShares VIX Short-Term Futures ETF (VIXY): ProShares VIX Short-Term Futures ETF provides long exposure to the S&P 500 VIX Short-Term Futures Index, which measures the returns of a portfolio of monthly VIX futures contracts with a weighted average of one month to expiration.

Markets dropped with Nvidia’s rally fizzling out, and on speculation that we won’t see another rate cut this year from the Federal Reserve.

Following jobs data that showed the addition of 110,000 jobs in September, the latest Fed Watch tool showed 40% odds of another cut by December. Yesterday, it stood at 50%.  Last month, it was up to 95%.

Not helping, Bitcoin is now below 90,000, which is pulling down names like Strategy, MARA Holdings, and Riot Platforms.