Market Volatility Bulletin: Nasdaq And Russell 2000 Lead U.S. Equities Lower

Summary:

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  • While generally of the summer NASDAQ and Russ2K stocks be inflicted with led the charge privileged, Friday showed this promote trend in reverse.
  • Call export in SPX was early to resemble the endeavor of in the dead of night January, exactly as the pointer began to descend from its all-time highs.
  • The VX stretch organize is not taking Friday’s slump in stocks sincerely, by the smallest amount not by this top.
  • Market Intro

    CNBC: Friday close

    While international indexes (ACWX, VGK) closed mostly higher on the weekend, the same was not true for US companies (SPY, DIA). The NASDAQ (QQQ) and the Russell 2000 (IWM) retreated in the neighborhood of 1.5% to 2%, respectively. Spot VIX rose, but hardly to what would be considered an alarming level.

    One could assert that US equities began their descent on the slight miss for Q2 GDP. In any event, the absolute figure was quite impressive by the standard of the current long-but-slow economic expansion. Perhaps the GDP price index reporting well outside the upper band of the consensus range (line two above) had something to do with it; that said 10-Yr Treasury yields remained more or less unchanged.

    CNBC reports that WTI oil (USO) is down four weeks in a row. That may well be, but the price remains near three-year highs. Oil volatility, now in the mid-twenties, has fallen from levels earlier this summer when it was regularly flirting with thirty. Declining vol seems to be the trend across most major asset categories.

—Collecting from seekingalpha.com

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