Bloomberg Surveillance · Friday, September 4, 2026
Despite the surprising August jobs report and subsequent market moves, volatility levels, as measured by the VIX, have remained relatively low. This is attributed to strong AI trades, robust earnings, and high dispersion within the equity market, allowing investors to rotate within sectors rather than exit altogether.
“And especially with the report that we just had, it was interesting that at-the-money break-evens on NFP were basically average. So, you know, you kind of look historically at these break-evens, and it was sort of pricing a nothing burger, which to some degree... a little complacent. But the options market was pricing a little bit more for CPI, which is ahead.”
“But the VIX has been very resilient. I wouldn't be surprised even with how things move in terms of rights pricing, your VIX still floating around that 15, 16 handle.”
“One, because the AI trades heavy and strong. Earnings were great. And then two, you've got really high dispersion, right? Like people have not left the equity market. They've just rotated within it. And that's keeping us pretty solid, pretty low VIX levels.”