The market’s fear gauge was climbing on Monday after a blowout jobs report cemented the idea that the Federal Reserve won’t cut interest rates by much–if at all–in 2025.
The Cboe Volatility Index, which tracks S&P 500 options and trades under the ticker VIX, rose 11% to 21.60 ahead of the U.S. open. Any reading of above 20 is typically seen as a sign of heightened uncertainty.
Investors are on edge after December nonfarm payrolls numbers came in way above economists’ expectations. That means there’s now no pressure on the Fed to cut rates, with the labor market still looking strong and inflation running above the central bank’s 2% target.