Stock Markets Reveal Hidden Fragility as VIX Hits Six-Month High on October 16

Stock markets showed underlying stress on October 16 despite a modest 0.6% drop in the S&P 500, as the Cboe Volatility Index (VIX) surged to its highest level in six months. Structural vulnerabilities linked to leveraged ETFs and technical trading dynamics amplified market sensitivity, according to Wall Street analysts. Bank exposure to equity risk from leveraged products reached an estimated $300 billion, highlighting growing systemic concerns.