Wall Street’s fear gauge spike ‘isn’t that surprising’ in panicked market, Cboe Says

  • 📰 BNNBloomberg
  • ⏱ Reading Time:
  • 36 sec. here
  • 12 min. at publisher
  • 📊 Quality Score:
  • News: 53%
  • Publisher: 50%

Business Nouvelles

Currencies,Futures,Legal

The great volatility spike of 2024 was triggered by a sudden wave of deleveraging on Wall Street — rather than a collapse of economic confidence with echoes of the pandemic-era dark days. Now all market signs suggest that calm is set to return to US stocks after the recent mayhem.

A Wall Street street sign in front of the New York Stock Exchange in New York, US, on Wednesday, July 31, 2024. Federal Reserve officials held interest rates at the highest level in more than two decades but signaled they are moving closer to lowering borrowing costs amid easing inflation and a cooling labor market.

“Given the large SPX futures move premarket, a corresponding large move in the VIX index really isn’t that surprising,” she said in an interview. That spread didn’t last long, and by the end of the session it had shrunk to 8 points. To some market watchers, the swift comeback is an indication that the initial VIX jump likely overstated the fear among investors.

During Covid, it “was both a liquidity event and a macro shock,” she wrote in a note to clients. “What happened on Monday was purely a liquidity event,” she added. “There was no fundamental/macro reason underlying the move and therefore no reason to expect volatility to remain persistently high once the deleveraging was over.”

Nous avons résumé cette actualité afin que vous puissiez la lire rapidement. Si l'actualité vous intéresse, vous pouvez lire le texte intégral ici. Lire la suite:

 /  🏆 83. in FR
 

Merci pour votre commentaire. Votre commentaire sera publié après examen.

France Dernières Nouvelles, France 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.

U.S. spot ether ETFs make market debut in another win for crypto industryOfferings from major firms trading on Cboe, Nasdaq, and NYSE
La source: globeandmail - 🏆 5. / 92 Lire la suite »

U.S. spot ether ETFs make market debut in another win for crypto industryOfferings from major firms trading on Cboe, Nasdaq, and NYSE
La source: globeandmail - 🏆 5. / 92 Lire la suite »