finance

My hypothesis is the markets anticipated something would eventually break due to high interest rates but didn't know how to react to the first notable report, leading to an overreaction. Within a day, we've seen a 45% increase in the VIX, the largest increase since the 43% spike during the COVID-19 pandemic. Once the market fully digests this they will understand rate cuts will now definitely happen in September. The most important thing is the uncertainty of the rate cuts is now assured and this is bullish.