AI is losing its stranglehold on the U.S. stock market. Here's why
A key tech-stock volatility metric options traders have been watching all year is reversing.
TL;DR
- A key tech-stock volatility metric is reversing, signaling a potential shift in market drivers.
- The spread between big tech volatility and the broader market's volatility has reached record highs and is now reversing.
- An accelerating sell-off in U.S. Treasury bonds and rising oil prices are drawing investor focus to macroeconomics and policy.
- The end of earnings season has also reduced volatility in AI-related stocks.
- Energy stocks are outperforming technology stocks, with the SPDR Energy Select Sector ETF extending its lead.
- Volatility in most tech stocks has collapsed, with Exxon Mobil being an exception.