Stock Market Update

[BRIEFING.COM] The downward drift in the stock market today isn't causing any undue angst. That statement rings true in a CBOE Volatility Index ("VIX") that is trading lower today, implying there isn't a big rush to put on hedges, using options, to protect against further downside.

Some view this dynamic as the restoration of the so-called "Fed put" in the market, which is to say the market believes any sign of dislocation will trigger policy support by the Fed to stem the tide of losses.

Currently, the VIX Index is down 1.2% to 15.21, leaving it down nearly 6.0% for the week. The VIX has dropped nearly 17% since the Fed's decision on September 18 to cut the target range for the fed funds rate by 50 basis points to 4.75-5.00%.

According to the CME FedWatch Tool, there is a 59.4% probability of another 50-basis points rate cut at the November FOMC meeting versus just 37.0% a week ago.