A Warning Flashes for Record U.S. Stock Rally
- S&P 500, Nasdaq 100 moving together with volatility gauges
- That’s a pattern that sometimes preceded drops in equities
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Fear gauges for the S&P 500 and Nasdaq 100 indexes may be providing reasons for caution about the rally in U.S. stocks.
The S&P 500 and Nasdaq 100 scaled new peaks Wednesday, but their respective measures of implied volatility also rose in tandem. Simultaneous increases in equity and volatility gauges are unusual, and a reason for concern for some. The pattern was repeated for the S&P 500 on Thursday.