The volatility index advanced as the S&P 500 declined 1.7% Friday, heading toward its first close up or down by more than 1% since July 8.

The equity markets dove after Federal Reserve Bank of Boston President Eric Rosenberg said that a “reasonable case” could be made to begin gradually normalizing interest rates to obviate a potentially overheating U.S. economic.

SEE MORE: ETF Strategies to Hedge Against a Correction

Market observers will be closely watching Fed Governor Lael Brainard’s speech on Monday to gather further clues on the direction of the central bank.

For more information on the CBOE Volatility Index, visit our VIX category.

iPath S&P 500 VIX Short Term Futures ETN

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