Fear of Stock Market Dive Creeps Back as Hedging Costs Climb

Investors can see it in the options market, where hedging against another rout is getting more expensive. Contracts betting on a 10% decline in the SPDR S&P 500 ETF — the largest exchange-traded fund tracking the index, better known by its ticker SPY — cost 1.8 times more than options that profit from a 10% rally, data compiled by Bloomberg show.

Stocks have wobbled of late, with the S&P posting losses in four of the past six weeks for a drop of almost 3%, amid deepening economic troubles in Europe and China. Meanwhile, the latest CPI report is expected to show that inflation posted a 3.6% annual increase in August, up from 3.2% the month before.

“There’s been hedging fatigue,” said Peter Cecchini, director of research at Axonic Capital. “Enough people were wrong about this year’s rally that they got tired of spending money to protect against future losses. But we don’t know how much longer the AI narrative will be able to carry stocks broadly higher.”

Argentina Últimas Noticias, Argentina Titulares

Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.

Stock market today: Wall Street drifts at the open, on track for a losing weekNEW YORK (AP) — Stocks are drifting, keeping Wall Street on track to close out its first losing week in the last three. The S&P 500 was up 0.2% early Friday. The Dow was flat and the Nasdaq composite edged up 0.3%.
Fuente: SooToday - 🏆 8. / 85 Leer más »

Stocks rise at the open as Fed officials hint at rate respite: Stock market news todayStocks stepped higher on Friday, with the Nasdaq gaining as Apple's shares recovered from a two-day slump.
Fuente: YahooFinanceCA - 🏆 47. / 63 Leer más »

China Stock Regulator Vows Market Support After Investor MeetingChina’s securities regulator pledged more measures to support capital markets and said it recently met with investors including BlackRock Inc. and Bridgewater Associates to hear their suggestions.
Fuente: BNNBloomberg - 🏆 83. / 50 Leer más »

Stocks rise as Fed officials hint at rate respite: Stock market news todayStocks stepped higher on Friday, with the Nasdaq gaining as Apple's shares recovered from a two-day slump.
Fuente: YahooFinanceCA - 🏆 47. / 63 Leer más »

Stock market drives U.S. households to record wealthFed data also points to a rebound in property values
Fuente: globeandmail - 🏆 5. / 92 Leer más »

RH stock sinks 15% after CEO warns of 'challenging' luxury housing marketRH, which caters to high income shoppers, says the housing market poses a challenging environment for the business.
Fuente: YahooFinanceCA - 🏆 47. / 63 Leer más »