Market Volatility Surges as Economic Data Disruptions Rattle Traders
Investors faced a turbulent session as the S&P 500 ETF (SPY) and Nasdaq 100 ETF (QQQ) slumped over 1.5%, erasing post-shutdown optimism. The absence of key economic reports—including delayed CPI data and an incomplete October jobs report—left markets navigating blindfolded. WHITE House officials warned of potential lasting damage to federal statistical systems.
Fear gauges flashed warning signals. The VIX volatility index spiked 15%, while CNN's Fear & Greed Index plunged into 'extreme fear' territory. Options markets reflected growing unease as traders priced in reduced odds of Fed rate cuts amid the data vacuum.