Downside Risks Rise As Tech Volatility Spikes

2026-06-09 04:55:00 ET

By Mandy Xu

Cross-Asset Volatility : Implied volatilities jumped across asset classes last week as markets grappled with rising US-Iran tensions, higher bond yields, and a sharp pullback in tech. Equity volatility led the increase, with the VIX Index up over 6 pts wk/wk to 21.5%, rising from the 14th percentile low to now the 86th percentile high over the past year. Higher oil prices and stronger-than-expected US economic data have led to even more hawkish Fed pricing, with the bond market now fully pricing in a rate hike by year-end. Traditional safe havens have all come under pressure, with fixed income and gold selling off alongside stocks and crypto. Gold volatility jumped higher last week, with GLD 1M implied volatility up 2.5 pts to 23.3%. Skew steepened notably as well, as GLD 1M skew (25-delta ratio) increasing to a 1-year high. Despite the move higher in bond yields, rate volatility has been remarkably contained, with VIXTLT Index remaining in the 18th percentile low....

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