DXY index and VIX surge as markets await U.S. Open
Markets reacted nervously to reports of Kevin Warsh replacing Jerome Powell as Fed Chair, causing dollar strength and volatility spikes.Summary
Markets experienced heightened uncertainty and a broad selloff across asset classes following reports that the Trump administration plans to name Kevin Warsh as the next Federal Reserve chair, replacing Jerome Powell. This speculation about potential monetary policy shifts caused risk sentiment to deteriorate. Consequently, the DXY index tracking the U.S. dollar rose to 96.6, and U.S. Treasury yields modestly increased. Volatility surged, with the VIX up 13% and the MOVE Index higher by 6%. In pre-market trading, tech stocks like QQQ fell, and Bitcoin slid significantly to $82,000, dropping it out of the top ten global assets by market capitalization. Equities tied to Bitcoin, such as MicroStrategy (MSTR), also declined, alongside metals like gold and silver, and other commodities.
(Source：CoinDesk)