The VIX index fell to 19.9 Monday after reaching 28.2 last week, as easing AI regulation concerns and hopes for a U.S.-Iran agreement lifted risk appetite, Anadolu reported.
The index rose last week amid election fears that a Democratic sweep could lead to stricter rules on AI development. Some Democrats opposed to AI development won state elections, raising the perceived chance of tighter oversight. After the vote, markets saw less risk that Democrats would limit AI growth as heavily as expected. Anadolu also cited increasing hopes for a U.S.-Iran deal and a calm Middle East as factors behind easing market fear.
AK Investment global markets strategist Uraz Cay told Anadolu that investors had shifted focus toward economic data and company earnings. He linked stronger buying in global equities to robust U.S. payroll figures, a positive share-price response to third-quarter earnings from a major data-center energy supplier, and TSMC’s better-than-expected October sales. Cay expects risk appetite to strengthen into year-end and forecasts fresh S&P 500 highs.
Oil-driven high interest rates had pushed investors toward caution before the elections, futures and commodity markets expert Zafer Ergezen told Anadolu. He said that backdrop brought selling in stocks, gold, silver, commodities and Bitcoin (BTC). Ergezen said markets were factoring in an end to the Iran war, while Brent crude had reached $90 a barrel without a lasting agreement.
Ergezen said the market’s expectation of an end to the war was reflected in recent statements. He said a durable accord would push oil lower and reduce the fear gauge further, even as interest in stocks, gold and silver increased.
EconoTimes earlier covered a U.S. market rebound as oil eased after AI concerns weighed on sentiment.
