Volatility spikes as semiconductor stocks plunge, marking Nasdaq's worst day since April 2025.

After a two-month rally, semiconductor stocks sharply dropped nearly 10%, causing a spike in the Cboe Volatility Index (VIX) and record options trading on the S&P 500. This sell-off signals a correction from speculative excess amid upcoming IPOs and potential interest rate hikes. The bond market also saw increased bearish bets, adding pressure to the broader market, including crypto. The Nasdaq experienced its worst day since April 2025, reflecting a broader market rebalancing after extreme volatility in single stocks.