For U.S. Traders, Overnight Stock Futures Have Been a Mirage
- Deep losses have been pared back for three straight sessions
- Volatility has been a feature of equity markets in 2022
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Twenty-four-hour liquidity is normally a gift to traders trying to manage through a world rife with threats. But getting too convinced by the direction of prices when American investors are asleep recently has been a recipe for pain.
Now you see it, now you don’t, has been the experience of anyone watching U.S. stock futures the last three sessions, when the S&P 500 contract has rallied 4.5%, 3.7% and 3.2% from lows touched in Asian hours. The difference between daytime and nighttime returns has been as wide as almost any time since 2008, according to data compiled by Bespoke Investment Group.