Both the S&P 500 and Nasdaq recorded their worst weeks since June, with weekly declines of 1. 9% and 4.
Traders also bought November 18 call options tied to VIX levels of 20 and 23, spending about $1. 7 million and $1. 1 million on the two trades. Those positions would benefit if volatility remained elevated into the third week of November.
Several indicators nevertheless pointed to a possible easing of the panic. Bitcoin held above $80,000 through the weekend, while BVIV, a 30-day implied-volatility gauge for bitcoin, slipped about 1% Friday and remained near 40%. Historical data covering 32 earlier Friday sessions in which the VIX rose at least 20% found that it fell the following Monday 25 times and rose seven times. The median Monday decline was 4. 5%, although the index continued rising sharply on Monday in seven cases.
That pattern partly repeated Monday.
The Friday selloff was concentrated in the technology and artificial-intelligence trade rather than spread evenly across the market. Energy shares gained as oil prices rose amid renewed tension around the Strait of Hormuz, while European markets faced separate pressure after weekend unrest in France. The VIX also remained below 20, a level it has exceeded on more than one-third of trading days since 1990, leaving room for volatility to rise again despite Monday’s initial relief.