John Hancock: Weekly Market Recap Week Ended October 12th
VIX volume
Stock market volatility spiked the VIX to 28.84 on Thursday, its highest level since February. The VIX, which tracks investor expectations of short-term S&P 500 volatility, is generally known as the fear index.
Manic markets
The Dow dropped more than 1,300 points in two days before rebounding Friday to close down 4.2% for the week. The Nasdaq dipped into correction territory Thursday, and the S&P 500 posted its biggest nosedive since 2016. This week’s plunge, driven by rising bond yields, marks the fastest flight from equity since last winter.
Bond yields climb
Long-term U.S. Treasury bond yields climbed, as yields on the 10-year bond climbed to 3.26%, a seven-year high. Meanwhile, 30-year bond yields outpaced 3.43% to reach a four-year high. Although yields dropped later on in the week, low unemployment and rising wages kept yields strong.
Concerns in China
Export data helped Chinese stocks rebound Friday after major market indexes fell by up to 3.1% earlier in the week. Chinese equity market performance is among the worst this year as investors react strongly to trade tensions.
Source: https://wmr.jhinvestments.com