The CBOE Volatility Index (VIX), Wall Street’s “fear gauge,” is beginning to flash warning signs regarding the markets.
Wall Street has witnessed losses over recent weeks, as inflation remains high and the Federal Reserve shows no intention of backing down on raising interest rates.
The labor market remains tight and wholesale prices climbed for the first time in three months, despite efforts by the Fed to slow the economy.
Meanwhile, Treasury yields and the competitive value the U.S. dollar over other currencies remains strong.
The closely watched volatility index has been gaining the attention of analysts, as its relationship with the S&P 500 index appears to have greatly diverged….