VIX Soars as Traders Fear AI Risks Over Interest Rate Hikes
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.