Mandy Xu of CBOE Global Markets warned that the stock market lowered the price risk of pricing even after a sharp sell-off on Monday. Xu believes that the bond market is more sensitive to economic uncertainty than in the past few months. But now, the gap may begin to narrow. “It’s more scope (volatility) because the options market is still pricing specific catalysts, not macro catalysts,” the company said on CNBC’s “fast currency.” According to Xu, the stock market is still trying to pick winners and losers of President Donald Trump’s tariff policy. The president said the U.S. will impose 25% of its duties from Canada and Mexico on Tuesday. He also said he would charge an additional 10% tariff on Chinese goods. “But the signal in the bond market is that we may weaken growth – possibly recession. And, we know, it’s not good for all stocks,” Xu said. On Monday, the CBOE volatility index soared 16% to 22.78. This is because the S&P 500 index turned negative that year. Nasdaq Comprehensive Materials has a higher correction field of over 9%. .VIX 1D mountain fluctuations soared on Monday. However, Xu found that the market did not seem to be panicked. “We’ve seen more and more hedging activities over the past few months. So, I think that’s part of the reason we haven’t seen panic,” Xu said. “It’s a way to manage risks in this uncertain environment. “Whenever the title comes up, you don’t know how long it will last, right? Will the tariffs back down the next day? The second month.” “I think that’s why we only see the volume of records. Not only in the S&P option, but comprehensive.” Xu shared the economic growth issues in the bond market – including tariff impacts and government layoffs. She fears it might cause demand shock. “It’s at the same time that we’re seeing a massive decline in the federal labor force. What does this mean in terms of consumer spending? It will be the key to pay attention to,” Xu said. The U.S. Bureau of Labor Statistics will release its February employment report this Friday. Sign up for the Choplight Newsletter, a hand-curated collection of video clips selected by CNBC top editors and producers. Your daily review of top businesses highlights and leads stories. Disclaimer
CBOE’s fluctuation experts warn tariffs | Real Time Headlines
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