Midday market 10/07: Jobs report sparks interest rate fears, tech drags SPY below 370

Morning market:

Market opened the last trading session of the week in red after the US September jobs report showed labor market better than expected, especially the unemployment rate, dashing hopes that FED will slow the rate hike process to support the economy. VIX surged along with increased hedging demand from the opening pushing indices down under pressure from market makers as previous out-of-the-money puts become gamma-sensitive, creating a feedback loop forcing market makers to continue selling as the market declines until put buyers start liquidating positions to take profits or roll hedges.

Key highlights:

1. US unemployment rate drops to 3.5% in September, lower than 3.7% expected