How To Invest: Use The VIX To Measure Fear And Confirm Key Stock Market Bottoms
The Volatility Index, commonly known as the VIX, can be used to gauge the amount of fear on Wall Street, and help confirm stock market bottoms.
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Yahoo
2 days ago
- Yahoo
Nasdaq, stocks close week higher on top of positive jobs report
US stocks (^DJI, ^IXIC, ^GSPC) close Friday's trading session in positive territory, the Nasdaq Composite index leading gains and rising over 1.2%. All three of the major market indexes closed out the first trading week of June with weekly gains. Market Domination Overtime's Julie Hyman and Yahoo Finance markets and data editor Jared Blikre recap the day's market and sector moves on the backdrop of the May jobs report release this morning. To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime here. That is the closing bell on Wall Street on this Friday. Now, it's time for market domination overtime. Jared Blickre going to be along in a moment to get us up to speed on the action from today's trade. I'm going to start with major averages finishing here higher for the day. All three major averages after we got a jobs report this morning that was okay. Okay enough to satisfy most investors here coming in with a gain of 139,000 jobs last month. Unemployment rate at 4.2%. All of that equaling higher stocks and higher bond yields as well. The Dow up 443 points on the day, a little more than 1%. The S&P 500 up a percent on the day as well. And the NASDAQ composite up 1 and a quarter percent. Now, as Josh pointed out earlier today, there was a headline that crossed late in the afternoon that the US was going to be having a phone call with London just on forwarding those trade talks. That didn't seem to make much of a dent, even though we know that this is a market that has been hungry for trade positive trade headlines. Uh so we'll see if we get some in the next few weeks as we get closer to some of the next deadlines when it comes to expiration of pauses and tariffs and such. Jared's got a closer look at today's action. Thank you, Julie. At the end of the day, at the end of the week, we are up. And I think that is welcome news for traders. Another potential catalyst, maybe even a negative one, behind us. And the net result today is a bit of risk on action. You can see that in the NASDAQ behind me that Julie was just looking at. Here's the five-day total up about 2.18%. Here's the S&P 500, a bit lower, 1 and a half percent, and the Dow below that. Still looking at gains of about 1.17%. And the Russell 2000, actually the leader of the group, up over 3% here. So nice showing for the small caps. And I was also checking out the VIX just now, dropped to a 16 handle. This is the lowest. I'm going to put a year-to-date chart on. This is the lowest we've seen since 221, February 21st. That was two trading days after that 219 high. And that was the ultimate high, the record high of the of the market. And so interesting to note that. Here is the ICE BofA move index. This is like the VIX of the bond market. And not quite as low relatively as the VIX, but still heading in the right direction, which is down. We did see yields pop today. And this is something I'm going to be watching closely next week. We got the 10-year above 4 and a half percent and the 30-year almost at 5% yet again. It's up eight basis points today. That's quite a bit. We do have a big set of auctions next week. Tuesday, Wednesday, Thursday, we got the threes, the tens, and the 30s. And so there's going to be a lot of eyes on the bond market. If we get some weak foreign buyers there, some weak interest, well, we could see risk markets take a little bit of a tumble. But what I like today, US dollar index was also up. So the sell America theme, not it today. Uh and let's check out the sector action first, and we'll get back to the NASDAQ. The energy sector was leading today up about 1.9%, followed by consumer discretionary, communication services, financials. All four of these outperforming the S&P 500. Tech next up on the on the final or on the upper row. That was up about 1%. Everything in the green there, you can see. And here's the NASDAQ. Tesla bouncing back, uh 3.67%. I think Tesla investors will take that. Broadcom taking a little bit of a tumble here. That's Tesla. Broadcom down 5%, but it was hitting record highs just a few days ago. Alphabet up 3% and a lot, lot more red, or a lot more green than red. And let's check out the final tally on the Dow. Then I'll send it back to you. Just a few staples and consumer discretionary stocks in the red here. Looks like an industrial as well with 3M, Walmart, Home Depot, McDonald's, Sherwin Williams. But for the most part, looking at a lot of green today. Sign in to access your portfolio
CNBC
2 days ago
- CNBC
Tesla sell-off on Musk-Trump feud is overdone, says Fundstrat's Tom Lee
Tesla 's plunge following CEO Elon Musk 's online feud with President Donald Trump on Thursday was unnecessarily severe and offers investors a good entry point, according to Tom Lee, Fundstrat's head of research. Musk and Trump threw barbs at one another over the course of Thursday. Musk claimed Trump would have lost the election without his support and called the president's spending bill a "disgusting abomination." Trump threatened to cut government contracts for the billionaire entrepreneur's companies. Tesla shares dropped 14% in Thursday's session, meaning the electric vehicle maker shed $152 billion in value — its biggest one-day market cap loss on record. Shares rose more than 4% in Friday's premarket. TSLA 5D mountain Tesla, 5-day chart Thursday's events marked a dramatic turn in the relationship between the president and the world's richest man. Trump at one point viewed Tesla vehicles at the White House and said he would buy one as a show of support for Musk, who was a key donor during last year's election. "For Tesla, we see today's pullback as a buying opportunity," Lee wrote in a note to clients. "In our view, Elon['s] actions are now ingratiating him with non-MAGA universe, which is a lot of the USA, and the rest of the world." Lee said Tesla, which has faced backlash as a result of Musk's support of Trump and his leadership in the contentious government efficiency initiative, can now see an "improved halo." The Fundstrat research chief also said that Trump's warning of Musk's companies losing government contracts was "hollow," given that they provide critical services. Tesla shares have dropped more than 29% in 2025. The average analyst polled by LSEG has a buy rating and expects shares to rise just over 1.5% in the year ahead. For the broader market, Lee said the lack of a major jump in the CBOE Volatility Index (VIX) shows investors "do not seem to be too concerned."
CNBC
3 days ago
- CNBC
The growth trade is back in vogue for now, Ned Davis Research says
Investors should favor growth stocks over value stocks as normalcy returns to the market, according to Ned Davis Research. The Cboe Volatility Index (VIX) traded at around 17 on Thursday, far below the April 7 peak of 60.13. Heightened trade tensions sent the VIX surging in early April and the S & P 500 tumbling, with investors worried that higher tariffs would tip the economy into a recession. Since then, stocks have recovered sharply as President Donald Trump paused many of the levies unveiled on April 2. The S & P 500 is about 3% below its all-time high set in February. .SPX YTD mountain SPX in 2025 With these changes, Ned Davis thinks growth stocks — which trade on the expectation of strong earnings expansion over several years — should hold a more prominent spot in investor portfolios. "We are moving 5% from bonds to stocks in our U.S. asset allocation recommendation, bringing the weights to 60% stocks (5% overweight), 30% bonds (5% underweight), and 10% cash (marketweight). We are also shifting our style recommendation from neutral to favoring Growth over Value," Ed Clissold, the Ned Davis chief U.S. strategist, wrote in a note Wednesday. "At the beginning of the year, Mag 7 stocks, which tend to be classified as Growth, were facing slower earnings growth and high valuations. The correction removed Mag 7's relative overvaluation," he added. Most "Magnificent Seven" stocks were under pressure at the height of the tariff scare. Since then, most have staged strong rebounds. Take a look at the group's performance since April 2. Nvidia : +29% Meta Platforms : +18% Amazon : +6% Alphabet : +7% Apple : +9% Tesla : +17% Microsoft : +21% Still, Clissold warned: "One Truth Social post could change how investors feel [toward] risk-on and riskoff assets. The NDR Daily Trading Sentiment Composite, which is in the U.S. [Asset Allocation] Model, is neutral but close to its excessive optimism zone. The implication is that the market is more susceptible to the next piece of negative news."
