Wall Street's "fear gauge" at over 5-month high on rate cut, Middle East worries
Wall Street's "fear gauge" spiked amidst geopolitical tensions rose and U.S. interest rate cut expectations fell
Wall Street's "fear gauge" hit its highest in more than five months on Friday due to a sharp pullback in interest U.S. rate cut expectations and escalating geopolitical tensions.
The CBOE Volatility index, opens new tab, an options-based measure of investor expectations for near-term stock market gyrations, hit 21.33 points, crossing the psychological mark of 20 points for the first time since Oct. 30, 2023.
Israel launched an attack on Iranian soil on Friday, sources said, in the latest tit-for-tat exchange between the two arch foes that has threatened to drag the region deeper into conflict and sent investors scrambling for safe-haven assets.
Meanwhile, with recent U.S. data painting a picture of a resilient economy, money markets now expect the Federal Reserve to cut rates by about 40 basis points this year, well below the roughly 150 bps expected at the start of 2024, according to LSEG data.
The benchmark S&P 500, opens new tab has slid more than 4 per cent this month through Thursday, cutting its gains for the year to about 5 per cent.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Bandhan Bank Q4 FY24 Results Preview: PAT, interest income likely to grow in almost double digits; asset quality may improve
Gold and Silver rate today (May 14, 2024): Precious metals trade in green; yellow metal above Rs 72,000 once again, white metal near Rs 85,350
SIP Returns: How Rs 3,000, 5,000, and Rs 10,000 SIPs can help you build retirement corpus of Rs 1.06 cr, Rs 1.77 cr, and Rs 3.53 cr
02:36 PM IST