{"id":11153,"date":"2025-03-04T12:53:13","date_gmt":"2025-03-04T12:53:13","guid":{"rendered":"https:\/\/finderica.com\/?p=11153"},"modified":"2025-03-04T12:53:13","modified_gmt":"2025-03-04T12:53:13","slug":"cboes-volatility-expert-gives-tariff-warning","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=11153","title":{"rendered":"CBOE&#8217;s volatility expert gives tariff warning"},"content":{"rendered":"<div>\n<div data-test=\"articleBody-2\" data-analytics=\"RegularArticle-articleBody-5-2\">\n<p><span hidden=\"\" aria-hidden=\"true\" class=\"ArticleBody-extraData\"><span hidden=\"\" aria-hidden=\"true\" class=\"ArticleBody-extraData\"><span hidden=\"\" aria-hidden=\"true\" class=\"xyz-data\">CBOE Global Markets&#8217; Mandy Xu warns the stock market is underpricing tariff risks \u2014 even after Monday&#8217;s sharp sell-off. Xu contends the bond market has been more sensitive to economic uncertainty than stocks over the past few months. But now, that gap may be starting to close. &#8220;There&#8217;s scope for it [volatility] to go even higher because the way the options market is still pricing tariffs is as a stock-specific catalyst, not as a macro catalyst,&#8221; the firm&#8217;s head of derivatives market intelligence said on CNBC&#8217;s &#8221; Fast Money .&#8221; According to Xu, the stock market is still trying to pick out the winners and losers of President Donald Trump &#8216;s tariff policy. The president said that the U.S. would impose 25% duties on imports from Canada and Mexico on Tuesday. He also said he would slap an additional 10% tariff on China goods. &#8220;But what the bond market is signaling is that we could be in for weaker growth \u2014 potentially recession. And, that as we know, is bad for all stocks,&#8221; said Xu. On Monday, the CBOE Volatility Index surged 16% to 22.78. It came as the S &amp; P 500 turned negative for the year. The Nasdaq Composite was more than 9% off its high, nearing correction territory. .VIX 1D mountain Volatility surged on Monday. Yet, Xu finds the market doesn&#8217;t seem alarmed. &#8220;We were seeing elevated hedging activity all throughout the last couple of months going into this. So, I think that&#8217;s partly the reason why we haven&#8217;t seen panic,&#8221; said Xu, who added that S &amp; P 500 zero days-to-expiration options volume surged to a record last month . It&#8217;s a way to manage risks in this uncertain environment, according to Xu. &#8220;Whenever a headline comes through, you don&#8217;t know how long it&#8217;s going to last, right? Are the tariffs going to get walked back the next day? The next month,&#8221; she noted. &#8220;I think that&#8217;s why we&#8217;re seeing just record volumes. Not just in the S &amp; P options, but across the board.&#8221; Xu shares the bond market&#8217;s economic growth concerns \u2014 including the tariff impact paired with government layoffs. She worries it could spark a demand shock. &#8220;This is happening at the same time we&#8217;re seeing large-scale reductions in the federal workforce. What does that mean in terms of consumer spending? That is going to be key to watch.&#8221; said Xu. The U.S. Bureau of Labor Statistics will release the February employment report this Friday. Sign up for the Spotlight newsletter, a hand curated collection of video clips selected by CNBC&#8217;s top editors and producers. Your daily recap of top business highlights and leading stories. Disclaimer<\/span><\/span><\/span><span class=\"HighlightShare-hidden\" style=\"top:0;left:0\"><\/span><\/p>\n<\/div>\n<\/div>\n<p><a href=\"https:\/\/www.cnbc.com\/2025\/03\/03\/market-correction-risks-cboes-volatility-expert-gives-tariff-warning.html\" target=\"_blank\" rel=\"noopener\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>CBOE Global Markets&#8217; Mandy Xu warns the stock market is underpricing tariff risks \u2014 even after Monday&#8217;s sharp sell-off. Xu contends the bond market has been more sensitive to economic uncertainty than stocks over the past few months. But now, that gap may be starting to close. &#8220;There&#8217;s scope for it [volatility] to go even<\/p>\n","protected":false},"author":1,"featured_media":11154,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[196],"tags":[4576,725,1604,3645,2305],"class_list":{"0":"post-11153","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-finance-news","8":"tag-cboes","9":"tag-expert","10":"tag-tariff","11":"tag-volatility","12":"tag-warning"},"_links":{"self":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/11153","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=11153"}],"version-history":[{"count":0,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/11153\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/media\/11154"}],"wp:attachment":[{"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11153"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11153"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11153"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}