VIX Stands Firm as Fear Drains, Stocks Chase Records and Earnings Keep Dip-Buyers Engaged

2 weeks ago 18

Gerelyn Terzo

Thu, May 7, 2026 astatine 9:51 AM CDT 3 min read

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McDonald’s (MCD) bushed net with EPS of $2.83 and 4% U.S. comparable income growth, but CEO Chris Kempczinski warned the user backdrop is deteriorating. Whirlpool (WHR) plummeted 13% aft slashing full-year EPS guidance to $3.00-$3.50 and suspending its dividend, citing recession-level manufacture decline. Shake Shack (SHAK) tumbled 28% aft missing gross estimates astatine $366.7M versus $372.3M expected.
The VIX’s autumn to 17 and dependable diminution from the March 27 highest of 31.05 masks a crisp disconnect betwixt calm options markets and distress signals from user spending and superior goods companies similar Whirlpool.
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The CBOE Volatility Index (VIX) slipped astir 1.2% Thursday greeting to hover conscionable supra the 17 level, extending a dependable drift little from the 31.05 highest acceptable connected March 27. The fearfulness gauge is down 28% implicit the past period and squarely wrong the 15 to 20 mean band. With stocks perched adjacent records, the CBOE Volatility Index (VIX) is telling traders the panic has drained out, adjacent arsenic the net portion paints a much analyzable representation underneath.

Three forces are pinning implied volatility to the floor. Geopolitical hazard that drove the March spike, including the warfare successful Iran and Strait of Hormuz disruptions, has been partially priced successful arsenic lipid prices fell backmost beneath $100. Rates are the 2nd anchor: the 10-year Treasury output sits astatine 4.4%, successful the 88th percentile of the past year, with traders watching whether the agelong enslaved mounts a sustained propulsion supra 5%. The 3rd is net play delivering capable beats to support dip-buyers engaged.

The 10-year U.S. Treasury enactment yield, the benchmark that broadly sets the outgo of borrowing crossed mortgages, car loans, and recognition cards, slipped much than 2 ground points to 4.33%. The 2-year Treasury, which tends to way Fed argumentation expectations astir closely, shed a akin magnitude to onshore astatine 3.849%. Further retired the curve, the 30-year enslaved output edged fractionally lower, falling little than 2 ground points to 4.926%.

The expert who called NVIDIA successful 2010 conscionable named his apical 10 stocks and McDonald's wasn't 1 of them. Get them present FREE.

Brent crude futures for July dropped 1.85% to $99.40 a barrel, portion U.S. WTI futures for June moved successful the other direction, rising 1.85% to $93.21 per barrel. Citi U.S. equity strategist Scott Chronert offered a sobering reminder that however agelong the standoff persists volition transportation existent consequences for the broader economy.

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