The S&P 500 fell last week, marking its weakest performance since early October as investors sold off tech stocks amid fading hopes for a December rate cut. Market volatility jumped sharply, with the CBOE Volatility Index rising roughly 14 percent and signaling heightened investor anxiety. 

Expectations for a rate cut dropped meaningfully, and concerns around inflated AI valuations added further pressure to the tech-driven market. 

In this environment, some investors are turning to volatility ETFs as tactical tools to hedge near-term uncertainty and potentially benefit from market swings. Several ETFs, including VXX, VIXY, and VIXM, offer exposure to VIX futures for those seeking short-term protection or volatility-linked opportunities.

Finsum: Rapid capital inflows into AI resemble past speculative bubbles, increasing the risk of concentrated losses if sentiment shifts.