September 28, 2022

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Dow, Standard & Poor's open lower after jobs report

Dow, Standard & Poor’s open lower after jobs report

Wall Street’s Volatility Index, or VIX, extended its gains Thursday this morning, up 5.4% to 32.89 points after Friday’s economic report pointed to strong job numbers and higher wage growth.

Analysts say the report gives the Federal Reserve the green light to raise interest rates by 0.50 percentage points to tame the highest levels of inflation in four decades, driven in part by a tight labor market and rising wages. This could lead to more market tension, causing shares of high-tech companies to fall even further.

Thursday’s stock market swung wildly, with the Dow Jones Industrial Average Posted her biggest drop This year is just a day after it posted its biggest gain since 2020, contributing to an ambiguous outlook for investors. However, analysts note that despite the stock market’s volatility in recent days, VIX is still 9.8% below its March 2022 highs.

Robert Shane, chief investment officer at Blank Shine Wealth Management, said in a note. “If investors really think the bottom is near, we will likely see VIX higher.”

Mr. Shen advises investors to prepare for sideways trading in the near future, especially since the market remains divided on whether the bottom is here.

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