Heart-Stopping Swings Abound in Low-Conviction Markets
- S&P 500’s best rally since 2020 follows slump of similar size
- Two-day volatility rules equities amid Fed tightening, war
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The S&P 500’s biggest plunge since 2020 has now been followed by its biggest rally. Hedge-fund and short-seller stocks are sailing around at extreme speed. Banks, slammed when war broke out, are suddenly surging as traders pile into bullish options.
Investors have a multitude of worries when it comes to Ukraine, the economy, central banks, and the pandemic. Making everything harder has been an easy-to-scare market that has gotten a lot jumpier at the surface.