The attacks come after state and local ransomware attacks in New York, Louisiana, Maryland and Florida resulted in the loss of significant sums.Technologyread more
Stocks are bouncing higher but could be trapped in a range longer term, until there's a resolution of the trade wars.Market Insiderread more
Powell will have the opportunity if not to walk back the "midcycle" assessment then to at least provide some further explanation about what it means.Economyread more
The report comes as Trump in recent days has lashed out over media reports about growing recession fears.Politicsread more
The Business Roundtable, led by Jamie Dimon, gives a new definition of the "purpose of a corporation."Marketsread more
Tilman Fertitta told CNBC on Monday that he is doing things in a "very conservative way" amid fears of a recession.Marketsread more
Saudi Aramco sent a request for proposal to several banks, people familiar with the matter told CNBC on Monday.Marketsread more
Twitter and Facebook have suspended numerous accounts that are believed to be tied to a state-backed information campaign originating from inside China.Technologyread more
Leaked documents from Google give fresh ammo to conservative lawmakers who have already accused Google and other tech companies of political bias.Technologyread more
J.P. Morgan estimates the average annual tariff cost per household will be $1,000 with the new round of Trump's tariffs.Marketsread more
Stasior left Apple earlier this year. Prior to his time in charge of Siri, he was a top executive at Amazon.Technologyread more
Two words from Federal Reserve Chairman Jerome Powell and one tweet from President Donald Trump turned the market upside down rapidly this week. Some traders saw it coming and are ready to reap big money as the sell-off gains steam.
Big bets had been placed on a comeback in market volatility in the two weeks leading up to the Fed's Wednesday policy meeting. In particular, traders had been loading up on call options in the Cboe Volatility Index, a measure of the 30-day implied volatility of U.S. stocks also known as the VIX or "fear gauge," wagering on big price swings in the market.
"There has been large call buying in VIX ahead of [the] much anticipated FOMC announcement. It is especially interesting in that we haven't witnessed as much bulky activity in VIX options since the great 'Volpocalypse' of 2018," said Maxwell Grinacoff, a derivatives and quantitative strategist at Macro Risk Advisors, in a note earlier in the week. "Volpocalypse" refers to the event in February 2018 when the VIX doubled as the Dow Jones Industrial Average tanked more than 1,000 points twice in a week.
The fear gauge jumped the most since May to 16.12 on Wednesday after the Fed lowered interest rates for the first time in more than a decade. The spike occurred when Fed chief Powell took the podium at a news conference and said the rate cut was a "midcyle adjustment," rather than the beginning of a lengthy cutting cycle, which disappointed the market and pushed the Dow down 280 points that day.
The VIX was triggered again Thursday this time by an afternoon Trump tweet where he abruptly ratcheted up the trade war with China by putting 10% tariffs on another $300 billion worth of Chinese goods, effective Sept. 1. The fear gauge popped to nearly 18 points on Thursday, while the Dow tanked another nearly 300 points. The selling continued Friday and the S&P 500 completed its worst week of the year down 3.1%. The VIX ended the week at 17.61.
Since July 16, about 1.3 million August/September VIX call contracts have been bought and the spike in market volatility is paying off for options traders, Grinacoff told CNBC.
Some traders had a big payday Friday, selling about 130,000 VIX August calls, but in the meantime, some 115,000 more VIX calls were bought on Friday alone, according to Macro Risk Advisors.
From the intensified trade war to uncertainties around the Fed's monetary policy, it looks like tranquility won't return to the market anytime soon. In fact, some on Wall Street are predicting more violent surges in the VIX are on the horizon.
"It looks increasingly likely to us that a jittery global equity market is on its way to seeing two volatility spikes in August, one early in the month and one towards the end of the month," Nomura strategist Masanari Takada said in a note to clients Friday. The two spikes Nomura predicts do not include the jumps in the VIX this week.
Hedge funds have started selling their long positions in U.S. stocks, which creates a catalyst for more volatility, Takada said. Additionally, there is an emerging pattern in the data "indicative of a renewed economic slowdown in China," which sets the stage for more chaos, the analyst said.
"Investors may do well to refrain from bargain-hunting in global equities until the market regains its footing after an August that we expect will be characterized by a bearish tilt and a pair of volatility spikes," Takada said.