{"id":20159,"date":"2025-04-07T11:49:26","date_gmt":"2025-04-07T11:49:26","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=20159"},"modified":"2025-04-07T11:49:26","modified_gmt":"2025-04-07T11:49:26","slug":"global-markets-rattled-as-vix-surges","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-ca\/analysis\/global-markets-rattled-as-vix-surges\/","title":{"rendered":"Global Markets Rattled as VIX Surges"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"559\" src=\"https:\/\/www.vtmarkets.com\/en-ca\/wp-content\/uploads\/sites\/13\/2026\/03\/image_fx-50-1024x559.png\" alt=\"\" class=\"wp-image-20161\" \/><\/figure>\n\n\n\n<p><strong>Key Points<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>VIX jumps to 39.284, signalling extreme volatility as S&amp;P 500 enters bear market and futures dive 4%.<\/li>\n\n\n\n<li>Hang Seng falls 13% in a single session\u2014the worst one-day loss since 1997\u2014while Taiwan stocks crash nearly 10%.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\" \/>\n\n\n\n<p>Global markets are convulsing under the weight of a spiralling trade war, evaporating investor confidence, and a sudden vacuum of central bank support. Equities across the globe continued to plummet, with the <strong><a href=\"https:\/\/www.cnbc.com\/2025\/04\/06\/stock-market-today-live-updates.html\">S&amp;P 500 futures (SP500) down 4% at one point on Monday<\/a><\/strong>, adding to a brutal two-day decline that has already erased <strong>over $5 trillion in market value<\/strong>.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">The carnage in financial markets unleashed by Donald Trump\u2019s tariffs is continuing unabated as equities get pummeled and US stock futures show that last week\u2019s $5 trillion wipeout isn\u2019t over <a href=\"https:\/\/t.co\/Vs4QEXincl\">https:\/\/t.co\/Vs4QEXincl<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/1909193360306319779?ref_src=twsrc%5Etfw\">April 7, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>The benchmark <strong>VIX index climbed to 39.284<\/strong> before settling around <strong>34.794<\/strong>, pushing into crisis-level volatility not seen since <strong>August<\/strong>. On the 15-minute chart, the volatility index has broken clear of any near-term resistance, rising from a low of <strong>23.644<\/strong> in just 48 hours\u2014an abrupt signal that traders are fleeing risk across all asset classes.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">No Pivot from the White House or the Fed<\/h2>\n\n\n\n<p>President Trump has <strong><a href=\"https:\/\/t.co\/PmfKYSi5NP\">doubled down on his stance<\/a><\/strong>, declaring, <em>&#8220;Sometimes you have to take medicine to fix something,&#8221;<\/em> after golfing over the weekend. This cold prescription came after markets suffered their <strong><a href=\"https:\/\/www.bbc.com\/news\/articles\/cx26v8x24w1o\">worst week since March 2020<\/a><\/strong>, but the White House shows no intention of reversing the heavy-handed tariff regime that is now inflicting global economic harm.<\/p>\n\n\n\n<p>Trump\u2019s tariff agenda has triggered <strong>34% retaliatory duties from China<\/strong> and prompted <strong><a href=\"https:\/\/www.reuters.com\/markets\/eu-prepare-countermeasures-us-reciprocal-tariffs-says-eu-chief-2025-04-03\/\">EU leaders to fast-track countermeasures on up to $28 billion in U.S. goods<\/a><\/strong>\u2014from dental floss to industrial machinery.<\/p>\n\n\n\n<p>Meanwhile, Federal Reserve Chair Jerome Powell remained noncommittal. While acknowledging rising anxiety in the business community, Powell highlighted the inflationary risks of tariffs and <strong>signalled no urgency to cut interest rates<\/strong>, despite markets pricing in up to five cuts for the year. This has left traders questioning whether either branch of US leadership will act to stop the bleeding.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">U.S. Tech and Banks Enter the Crosshairs<\/h2>\n\n\n\n<p>Market participants hoping that megacap tech stocks would provide shelter from the storm have been disabused of that notion. The <strong><a href=\"https:\/\/finance.yahoo.com\/news\/prediction-unstoppable-ai-stock-top-101500854.html\">&#8220;Magnificent Seven&#8221; tech leaders<\/a><\/strong>\u2014once the darlings of global portfolios\u2014have now entered a bear market of their own, <strong>shedding more than 25% from their December highs<\/strong>.<\/p>\n\n\n\n<p>This comes amid warnings from economists such as <strong>Ricardo Hausmann<\/strong>, who point out that while the U.S. runs a massive goods deficit, it also enjoys a <strong><a href=\"https:\/\/www.cnbc.com\/2025\/04\/03\/trump-trillion-dollar-tariffs-wall-stock-market-economy.html\">$1 trillion services surplus<\/a><\/strong>. This includes digital platforms, finance, and intellectual property\u2014precisely the sectors now most vulnerable to non-tariff retaliation. French officials, for instance, are floating <strong>investment freezes and regulatory actions<\/strong> against U.S. firms, going far beyond traditional tariff tools.<\/p>\n\n\n\n<p>The EU\u2019s new <strong><a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2025-04-07\/germany-calls-for-strongest-tool-to-retaliate-against-us-tariffs-m96xrcbi\">Anti-Coercion Instrument<\/a><\/strong> gives it teeth to restrict U.S. access to public procurement, financial services, and IP protections\u2014areas dominated by Big Tech and large American banks.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Global Selloff Deepens<\/h2>\n\n\n\n<p>Asian equity markets suffered historic losses on Monday, as panic over escalating trade tensions sent traders fleeing. <strong>Taiwan\u2019s stock market crashed 10%<\/strong>, marking its <strong><a href=\"https:\/\/www.reuters.com\/markets\/asia\/taiwan-stock-exchange-unveil-more-market-stabilisation-steps-if-needed-2025-04-07\/\">largest single-day decline on record<\/a><\/strong>, while <strong>Hong Kong\u2019s Hang Seng Index plunged 13%<\/strong>, a collapse not seen since the <strong>1997 Asian Financial Crisis<\/strong>. The carnage extended to tech stocks, with the <strong>Hang Seng Tech Index falling 17%<\/strong>, its <strong><a href=\"https:\/\/www.reuters.com\/world\/china\/china-stocks-sink-trade-war-fears-hong-kong-dives-8-2025-04-07\/\">worst single-day performance in history<\/a><\/strong>, despite efforts by <strong>China\u2019s Central Huijin sovereign wealth fund<\/strong> to stabilise the market through direct intervention.<\/p>\n\n\n\n<p>These dramatic declines reflect deepening fears of a global economic slowdown, particularly in export-heavy regions vulnerable to U.S.-led tariff disruptions. The selloff underscores how exposed Asia\u2019s tech and manufacturing sectors are to geopolitical risk and investor sentiment, with recovery unlikely without clear diplomatic or monetary policy shifts.<\/p>\n\n\n\n<p>Meanwhile, Treasury yields <strong>briefly rose<\/strong>, then retraced as demand returned, with the <strong><a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2025-04-03\/us-10-year-yield-drops-toward-4-as-tariffs-fuel-haven-demand\">10-year yield falling to 3.953%<\/a><\/strong>. The <strong>US dollar strengthened<\/strong>, especially against the <strong>Chinese yuan<\/strong>, as capital fled toward perceived safety.<\/p>\n\n\n\n<p>Oil markets plunged as well. <strong>WTI crude dropped to a four-year low<\/strong>, while even traditional safe havens like <strong>gold and Bitcoin fell<\/strong>, suggesting widespread liquidation to cover losses.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Technical Analysis<\/h2>\n\n\n\n<p>The VIX chart reflects a <strong>significant surge in volatility<\/strong>, jumping from <strong>23.644<\/strong> to a peak of <strong>39.284<\/strong> within a few sessions\u2014a strong indicator of rising market fear or uncertainty. This spike aligns with the recent drop seen in the SP500, suggesting a sharp risk-off sentiment across markets.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/en-ca\/wp-content\/uploads\/sites\/13\/2026\/03\/1_image-7-1024x442.jpg\" alt=\"\" class=\"wp-image-20160\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center\"><em>Picture: Elevated VIX signals heightened caution across the board, as seen on the <\/em><em><a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\">VT Markets app<\/a><\/em><\/p>\n\n\n\n<p>After the sharp run-up, volatility consolidated and began tapering off slightly, with the MACD crossing into bearish territory and the price slipping below the short-term moving averages. However, it\u2019s still hovering at elevated levels, signaling <strong>lingering caution<\/strong> among traders.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Cautious Forecast<\/h2>\n\n\n\n<p>Traders should expect choppy markets and sustained volatility in the near term. The <strong>VIX remains elevated<\/strong>, the <strong><a href=\"https:\/\/www.vtmarkets.com\/analysis\/sp-500-slumps-into-bear-territory\/\" title=\"\">S&amp;P 500 is in confirmed bear market territory<\/a><\/strong>, and <strong>macroeconomic data<\/strong> this week\u2014especially Thursday\u2019s US inflation print\u2014will likely add more fuel to already burning volatility.<\/p>\n\n\n\n<p>Unless the White House alters course or the Federal Reserve signals clear monetary support, sentiment may deteriorate further. Markets are likely to remain under pressure as hedge funds de-risk, retail traders panic-sell, and corporate earnings season opens with a likely barrage of downward revisions and margin pressure.<\/p>\n\n\n\n<p><strong><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/\">Create your live VT Markets account<\/a><\/strong><strong> and <\/strong><strong><a href=\"https:\/\/myaccount.vtmarkets.com\/login\">start trading<\/a><\/strong><strong> now.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The VIX hits its highest level since August, equity markets spiral further into bear territory. &#8211; vtmarkets.com<\/p>\n","protected":false},"author":64,"featured_media":20161,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[31],"tags":[11],"class_list":["post-20159","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","tag-indices"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/20159","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/64"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=20159"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/20159\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/20161"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=20159"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=20159"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=20159"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}