The dollar dropped on the strong economic news, as it gives traders confidence to continue the risk trade (short dollar/long commodities/long emerging markets).
The CBOE Volatility Index (VIX), a measure of the cost of buying puts and options on the S&P 500, dropped immediately at 10 AM ET as the ISM revealed strong manufacturing activity than expected.
September pending home sales (contracts) were also stronger than expected, rising to their highest level in nearly three years.
The VIX moved up almost 6 points (24 percent) on Friday, and is down 2.5 points (8 percent) today, so it has lost nearly 40 percent of the gains it made on Friday.
Now that 80 percent of the S&P 500 has reported earnings, it’s going to be all about economic news for the next couple months.
- The Dow 30 in Real Time
- The CNBC Stock Blog
- Get The Latest On Currencies
- Fed to Keep Rates on Hold Amid Uncertain Outlook
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