Fear Index Jumps as Wall Street Frets About Tariffs, Jobs and the Fed
Investors were feeling a little more on edge on Tuesday, with markets set to reopen after the Labor Day long weekend.
The Cboe Volatility Index, or VIX, jumped to 17.2 from 15.4 in early trading. Any reading of below 20 tends to indicate relatively low volatility, but the move is still a sign of growing nerves on Wall Street.
Three sources of uncertainty are spooking the market as September kicks off. President Donald Trump’s move to oust Federal Reserve Gov. Lisa Cook, who is challenging the decision, has sparked concerns about the central bank’s independence. Investors are also weighing up a U.S. court ruling on tariffs, and waiting for a jobs report that should help determine if the Fed will cut interest rates later this month.