Connect with us

Hi, what are you looking for?

News

Stocks Were Unusually Quiet in June. Traders Think That Is About to Change.

Stocks Were Unusually Quiet in June. Traders Think That Is About to Change.

Traders are gearing up for a pickup in volatility following an unusually sleepy stretch for the stock market.

The gap between the S&P 500’s daily peak and trough narrowed to 0.62 percentage point in June. That was down from 0.98 percentage point in May, marking the lowest level of intraday volatility within a month since December 2019, according to Howard Silverblatt, senior index analyst at S&P Dow Jones Indices.

After a notably quiet stretch, many analysts are anticipating a break in the lull. The simplest reason: Trading desks tend to become more lightly staffed during the summer as employees take off for the holidays. That generally means there is less liquidity in the markets.

In turn, any surprising economic data, corporate news or monetary-policy news tends to “hit the market harder than they otherwise might,” said Nicholas Colas, co-founder of DataTrek Research, in an emailed note.

“And since volatility and returns have a negative correlation, this dynamic can make for difficult investment environments,” Mr. Colas said.

You May Also Like

World

France, which has opened its borders to Canadian tourists, is eager to see Canada reopen to the French. The Canadian border remains closed...

Health

Kashechewan First Nation in northern Ontario is experiencing a “deepening state of emergency” as a result of surging COVID-19 cases in the community...

World

The virus that causes COVID-19 could have started spreading in China as early as October 2019, two months before the first case was identified in the central city of Wuhan, a new study...

World

April Ross and Alix Klineman won the first Olympic gold medal for the United States in women’s beach volleyball since 2012 on Friday,...