Investors are bracing for an extended period of market volatility, as worries over a potential resurgence in coronavirus cases and political uncertainty roil stocks.
The Cboe Volatility Index, known as"Wall Street's fear gauge," hit its highest level in nearly two weeks as concerns over waning fiscal stimulus and the long-term economic consequences of the coronavirus pandemic took the S&P 500 down to a seven-week low on Monday.Market participants aren't expecting the turbulence to die down any time soon.
"It's not just Election Day that matters to this market," said Stacey Gilbert, portfolio manager for derivatives at Glenmede Investment Management."It's also 'do we get fiscal stimulus or do we not?'"