VIX Plunges 15% as Wall Street Suddenly Forgets About Recession Fears
* The VIX, Wall Street’s fear gauge, dropped sharply as traders piled back into risk assets, signaling a sudden shift in market sentiment away from panic buying.
* A surprise bounce in tech stocks and better-than-expected jobless claims data triggered a massive short squeeze, forcing bearish VIX bets to unwind quickly.
* Analysts warn the VIX move may be a "dead cat bounce" in volatility, with potential for a swift reversal if Fed hints at another rate hike next week.
* The VIX term structure inverted for the first time in two weeks, a rare signal that near-term hedging costs are collapsing faster than long-term fears.
* Retail investors rushed to load up on VIX ETFs, according to trading data, despite the index’s current drop, indicating many are betting this calm is temporary.