Wall Street is navigating a volatile trading environment as investors weigh the cost of artificial intelligence infrastructure, major corporate earnings and uncertainty surrounding the 2026 U.S. midterm elections. On Market Movers, Remy Blaire speaks with JJ Kinahan, Senior Vice President, Head of Retail Expansion and Alternative Investment Products at Cboe Global Markets, about rising market volatility, the financial risks surrounding Big Tech’s AI investments and what options markets are signaling ahead of earnings from AMD and McDonald’s.
Kinahan examines the latest market movements as the Nasdaq rebounds while the Dow faces pressure from companies including Apple and Salesforce. With the Cboe Volatility Index hovering near 21, he explains why investors are becoming increasingly cautious and how the recent weakness in technology stocks is contributing to broader market uncertainty. While Election Day introduces additional volatility, Kinahan believes much of the recent market pressure stems from concerns surrounding the artificial intelligence investment cycle.
The conversation explores the significance of the VIX, which measures market expectations for near-term volatility using S&P 500 options prices. Kinahan describes a reading above 20 as a warning signal that investors should pay closer attention to their portfolios. He discusses why elevated volatility reflects growing uncertainty about technology valuations, corporate spending and whether the market can maintain its upward momentum.