Following a notable performance in credit spreads amid declining stock prices, investment-grade and high-yield spreads increased by 3.5 and 13.5 basis points, respectively. The three-month VIX remains in a cautious range, inverted by approximately three points. Analysts observed that the recent spike in the VIX was the second largest ever recorded, trailing only behind February 2018. This spike was attributed to the low starting point for short-dated S&P implied volatility, which was at its lowest in years. The post-Federal Open Market Committee (FOMC) reaction caused the VIX Index to rise significantly above its futures, leading to a deep negative reading, reminiscent of the 2020 Covid Crash. In the last three days, VIX futures have decreased by 14%, indicating a more orderly implied volatility crush, which analysts are closely monitoring for signs of market stabilization.