The Cboe Volatility Index, or VIX, jumped to its highest level all year on Friday morning after a troubling jobs report exacerbated Wall Street’♔s fears about a weakeninꦕg economy.  

The U.S. added just 114,000 jobs in July, according to Labor Department data released on Friday. The report also showed the unemployment rate jumped to 4.3% from 4.1% in June, triggering the 澳洲幸运5官方开奖结果体彩网:Sahm Rule recession indicator. 

The VIX, a measure of expected market volatಌility, subsequently leaped 🅰nearly 10 points to as high as 28.25, its highest level since October 2022.

Concerns Economy Won't Have a Soft Landing

Volatility was already on the uptick before Friday’s ominous jobs report. The VIX, sometimes called the “fear index,” hummed along below 15, a relatively low level indicating stability, from early May to mid-July. Simultaneously, the S&P 500 steadily crept higher as investors became increasingly confident the U.S. economy was coming in for a 澳洲幸运5官方开奖结果体彩网:soft landing. 

But the calm in the markets was disrupted in mid-July when a soft inflation report sparked a sell-off in big tech stocks and 澳洲幸运5官方开奖结果体彩网:rotation into small-caps. Volatility began to rise amid the rotation and has accelerated in recent weeks after some 澳洲幸运5官方开奖结果体彩网:disappoinꦇting tech earnings reports ๊and💛, this week, signs of a weakening labor market.

Market Breadth Remains Intact

Analysts expect volatility to remain elevated as ec𓆏onomic and geopolitical uncertainty weigh🤡 on markets. 

But heightened volatility doesn’t necessarily mean stocks will f๊all.

“Fortunately, breadth remains solid with ~75.0% of the S&P 500 trading above its 200-DMA, providing longer-term investors with some solace,” wrote John Lynch, Chief Investment Officer at Comerica Wealth Management, in a note Friday.