A sharp sell-off hit equities last Friday, with AI and technology shares leading the declines, as volatility abruptly reversed and the VIX briefly rose above 20.
According to Jin10, analyst Divyang Shah said the move reflected multiple factors, but the most notable driver was the sudden shift in volatility, which also pushed the VIX futures curve higher.
Shah said the shock has gradually faded, although spot VIX levels remain slightly above where they were before last Friday’s plunge. He added that the spread between near-month VIX futures and spot has narrowed to roughly flat, while the futures curve has edged lower but remains upward sloping overall.
In Shah’s view, the market’s tone has stayed broadly constructive despite the temporary volatility spike. He said investors are cautious about the recent gains in AI and technology stocks, but as the market digests last Friday’s decline, sentiment has not shifted toward broad pessimism.
AI TRENDS | VIX Briefly Tops 20 After Tech Sell-Off, Then Eases
2026-06-09 12:24:13
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