We suddenly have a growth scare. The problem for the Federal Reserve is that inflation has come down a lot from the four-decade highs of 2022 but remains well above the two percent goal. This is likely to constrain their hands.

Enter the notorious waltz of negative convexity. Think of the market as a precarious see-saw: the steeper the drop, the sharper the spike in volatility, much like a see-saw suddenly losing one side.