Blame Elon Musk for the sour mood that’s shaping up for Thursday, as Tesla earnings gloom appears to be having a pinball effect across several asset classes.
Assets moving in tandem is the theme of our call of the day, from TheoTrade’s chief market technician, Jeff Bierman, who sees dark clouds gathering for markets due to “asset auto correlation overload.” The VIX, or the Cboe Volatility Index VIX , is a gauge of expected stock-market volatility, which saw its lowest finish since January on Tuesday of around 16.83 — its long-term average is around 20.
And he thinks the market has already squeezed in so much good news, there’s scant upside left, while there’s a ton of wide open space to the downside. IBM IBM shares edged higher after Big Blue topped earnings and software sales expectations. The tech giant also boasted of how AI will improve productivity as it laid off thousands.
Biden recession coming