Pre-CPI Market Volatility Fades

The video discusses recent trends in market volatility, focusing on the VIX gauge and the shift towards zero-day options. It highlights a structural change in the market, with a significant portion of S&P 500 options moving to zero-day options, indicating more risk than perceived. The discussion then shifts to the yield curve, exploring its steepening and historical trends, particularly in relation to Fed interest rate cuts and potential recessions.

What does the VIX indicate about market risk according to the discussion?

What implications does the yield curve steepening have for future interest rate cuts?