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The federal government has been shut down since the start of the month, and
prediction markets are saying it could become the longest shutdown in U.S. history. The Fed’s “beige book” reported that the economy has slowed down over the past two months. Last week, President Donald Trump decided to use Truth Social to fire off new tariff threats against China. And, just last week, investors got spooked by signs that banks’ recent credit losses might not be isolated incidents.
It seems as if investors have been getting hit with one market-moving risk after another — and markets have certainly moved. The Cboe Volatility Index VIX closed at its highest level since April on Thursday, as U.S. stock indexes reversed between gains and losses over several choppy days of trading. (The VIX fell back nearly 18% a day later.)
This post was originally published on Market Watch
