VIX Stages Double-Digit Spike As Risk Off Takes Over; Chipmakers Fail To Rebound, Weight Loss Giants Eli Lilly, Novo Tumble: What's Driving Markets Thursday?

It’s another risk-off day on Wall Street, with all major U.S. indices trading in the red. The CBOE Volatility Index (VIX), often referred to as the market’s fear gauge, spiked over 10%, reaching levels last seen in late April.

Both the S&P 500 and the Nasdaq 100 indices declined by 0.6%, while the Dow Jones Industrial Average fell 0.7%, potentially ending a streak of six consecutive positive sessions.

Small-cap stocks also succumbed to the broader negative sentiment, with the Russell 2000 index dropping 0.7%.

Chicago Fed President Austan Goolsbee, a known “dove” on the board, expressed optimism about progress on inflation and the U.S. economy’s resilience in avoiding a recession. He did not commit to a potential rate cut in September.

Shares of Eli Lilly plunged 5.6%, marking their worst session since mid-March 2021, while Novo Nordisk shares dropped 5%, their worst performance since August 2022.

On the economic data front, jobless claims rose more than expected last week and continuing claims reached their highest level since November 2021, indicating a cooling trend in the labor market.

The U.S. dollar acted as a safe haven, rising 0.3%, while Treasury yields inched higher across the curve. The European Central Bank kept interest rates unchanged, as expected, keeping the door open for September.

In commodities, growth-sensitive copper tumbled over 3%, hitting its lowest level since mid-April. Silver eased by 0.9% and gold remained flat. Oil prices slipped 0.3%, while natural gas surged over 4%, nearly recouping Wednesday’s sharp losses following a weaker-than-expected buildup in inventories last week.

Bitcoin (CRYPTO: BTC) edged 0.4% lower, eyeing a second consecutive negative close.

Thursday’s Performance In Major US Indices, ETFs

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Thursday’s Market Movers

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