BlockBeats News, June 6th. As the semiconductor sector experienced a sharp pullback, the Cboe Volatility Index (VIX), known as Wall Street's "fear gauge," surged nearly 40% in a single day, marking the largest gain since March this year. The VanEck Semiconductor ETF (SMH) fell by nearly 10% intraday, ending a strong rally of about 80% over the previous two months.

Data shows that the S&P 500 index options saw a record 7.8 million contracts traded on Friday, a 16% increase from the previous high in April. Meanwhile, the 10-year Treasury yield rose after strong nonfarm payroll data, leading to a significant increase in demand for put options on long-term Treasury ETFs (TLT) as well as investment-grade and high-yield bond ETFs.

Brent Kochuba, the founder of the options analysis platform SpotGamma, stated that the recent abnormally high premium of single-stock options compared to index options is readjusting, indicating a need for the overheated chip stocks to cool down. Danny Kirsch, the head of options at Piper Sandler, pointed out that a substantial amount of leveraged ETF funds are concentrated in the semiconductor sector. Coupled with funding for tech giants like Meta and Alphabet and concentrated large IPO issuance, the market correction pressure has been further intensified.

Impacted by the decline in risk appetite, Bitcoin briefly dropped below $60,000 before stabilizing, while Strategy's stock fell by nearly 7% on the day, with the trading volume of put options exceeding that of call options by two-fold. The Nasdaq index recorded its worst single-day performance since April 2025.