Wall Street's 'fear gauge' punches back as the 'crash up' in chip stocks finally reverses
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- VanEck Semiconductor ETF (SMH) fell almost 10 % at its low on Friday, ending a two‑month 80 % rally that added roughly $500 billion in market cap to the Nasdaq 100.
- Cboe Volatility Index (VIX) posted its largest single‑day rise since March after touching its lowest level since January on Thursday.
- S&P 500 index options reached a record 7.8 million contracts on Cboe Friday, 16 % higher than the previous record set in April.
- 10‑year Treasury yields dropped 40 basis points after strong employment data, while puts outnumbered calls over 8 to 1 on TLT, LQD, and HYG.
- Michael Saylor’s Strategy fell nearly 7 % as options traders bought more than twice as many puts as calls, while Bitcoin held above $60 000 after briefly slipping below that level.
Why it matters: Leveraged semiconductor ETFs and bond‑linked ETFs suffer sharp losses, while options traders capture gains; the heightened VIX forces risk‑averse funds to rebalance, tightening liquidity across tech, fixed‑income, and crypto markets.
