Inverted VIX Futures Signal Potential Near-Term Bottom for S&P 500

A stock market volatility indicator, VIX, has reached a level that historically suggests the S&P 500 might be nearing a short-term bottom. This comes amidst global stock market declines and increased investor anxiety following weak US jobs growth, prompting speculation about the Federal Reserve`s interest rate policy. The VIX surge, exceeding typical levels relative to the S&P 500, indicates heightened uncertainty. Traders are hedging against further market swings by buying options, reflected in the increased volatility of the VIX itself (VVIX). This overall market uncertainty has also impacted investor sentiment towards small-cap stocks, as seen in the rising put option demand for related ETFs.