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VIX Soars as Traders Fear AI Risks Over Interest Rate Hikes

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The Cboe VIX Index has spiked to 18 amid increased options trading, reflecting heightened market concern over AI-related risks.

This shift indicates that investors see AI as a more immediate threat to market stability than future rate changes.

Despite a 90% chance of a Fed rate increase this week, volatility linked to interest rates has eased, while AI fears dominate traders' focus.

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