The volatility in the US100 and S&P 500 indexes CFD is seldom limited to the equity market alone. Large movements in US indexes frequently impact the forex market, gold prices, and overall market sentiment. This may be useful information for CFD traders to consider when trading more than one instrument.
The US100 index may be influenced by attitudes to technology and growth stocks, while the S&P 500 provides a bigger picture of the US equities market. In case of substantial fluctuations of these CFD indices, traders tend to reevaluate their risks.
The role of VIX
Also referred to as the market’s “fear gauge,” the VIX index gauges the level of anticipated volatility in the S&P 500.
An increase in VIX values is commonly an indicator of growing market uncertainty, which would typically fuel the demand for safe-haven assets like the US dollar, Japanese yen, or gold. On the other hand,
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