Investors Remember ‘Stocks Can Go Down Too’ in Return to Hedging

-- Hedging is back as investors fret over concerns about everything from the US presidential election to second-quarter earnings, economic growth and interest rates.Trump’s Remarks Spark Rebuke From Mexico’s President-ElectThe Cboe Volatility Index, a gauge of options prices, surged the most in more than a year last week as stocks sank with growing calls for Joseph Biden to quit the presidential race.

With increased chances of Trump winning the presidency largely baked in, positioning in the rates market is shifting to gauge the chances of a cut at the end of this month or a bigger one in September.Some of the froth has come out of the stock market as earnings ramp up.

When it comes to equity options, not only have puts been bid up, but calls are also under pressure, according to Nations. His company’s index of call volatility was down 6.3% on Friday. That may be a sign traders are willing to risk being short bullish contracts, expecting implied volatility to ease if the S&P 500 rebounds.

While it’s still too early to tell whether the shift in positioning will last, the quieter summer days may exaggerate moves.

Belgique Dernières Nouvelles, Belgique Actualités

Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.

Stocks and cryptos trade sideways as investors eye PCE report, Biden-Trump debateThe Kitco News Team brings you the latest news, videos, analysis and opinions regarding Precious Metals, Crypto, Mining, World Markets and Global Economy.
La source: KitcoNewsNOW - 🏆 13. / 78 Lire la suite »

What crypto and Web3 mean for investors: Stocks in TranslationThe tech sector has been pushing the markets (^DJI,^GSPC, ^IXIC) to record highs in 2024. Yet, AI isn’t the only trend dominating the sector. Web3 is...
La source: YahooFinanceCA - 🏆 47. / 63 Lire la suite »

Stock market today: US stocks edge lower as investors watch for cuesInvestors are wondering whether the recent rough ride for stocks is a sign of a coming retreat.
La source: YahooFinanceCA - 🏆 47. / 63 Lire la suite »

The 5 space stocks investors need to watchThe space industry is counting down to lift off with major investments pouring into the sector from multiple superpowers. Many space-related companies have...
La source: YahooFinanceCA - 🏆 47. / 63 Lire la suite »

Global Investors Turn Cautious on Once Favorite Japanese Stocks(Bloomberg) -- Japan’s record share market rally earlier this year is looking like a distant memory as foreign investors sell off stocks in a sluggish...
La source: YahooFinanceCA - 🏆 47. / 63 Lire la suite »