Heavy selling hit both main equity indices and precious metals on Friday, extending a second day of bearish reaction to key earnings and triggering a volatility spike. The VIX briefly reached 24, raising questions about whether this marked a near-term peak or whether further turbulence lies ahead, with VVIX and MOVE pointed to as corroborating signals. Bond market volatility rose on Friday in what was described as a “bull-flagging” pattern, and the market’s earlier relief over no immediate rate hike—set against near certainty of a December hike—was reported to have been firmly reversed over the following two sessions.
Rate and Yield Movements
Attention also turned to rates and positioning, after the US 10-year yield retreated from the 5.30s% to around 5%, despite persistent inflation concerns. The move was framed alongside heightened unrest across Europe and the possibility of safe-haven demand as expectations built for further strain on risk assets.
Geopolitical and Earnings Uncertainty
The discussion was positioned around market scenarios into the US midterms, with added uncertainty tied to potential Iran-related conflict, while earnings remained central to near-term price impact assessments.
