Stocks and Spooks: Why AI Risks Are Overtaking Bond Market Fears The current stock market volatility suggests that inflation and interest rates are no longer the primary concerns.
Instead, investors are pricing in a significant risk premium for artificial intelligence related stocks. This shift is evident in the Cboe VIX Index's recent spike to 18, which indicates a heightened sense of anxiety.
The AI Effect Options traders are betting big on AI related woes, and their bets are paying off.