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Week ahead is the market recovery or temporary reprieve

The past week in the US equity markets was a rollercoaster ride that left traders on edge. The Cboe Volatility Index (VIX) spiked to an alarming, sending shockwaves through the markets as the S&P 500 plummeted. The sudden surge in volatility triggered an almost immediate reaction from systematic funds, which are programmed to adjust their positions based on pre-defined rules. These funds, which had increased their equity holdings, were forced to slash them, a move reminiscent of the drastic actions taken at the height of the pandemic. By mid-week, however, the narrative began to shift. The S&P 500 staged a dramatic comeback, posting its largest gain since 2022 with rise. By the end of the week, the index had recovered from its lows, and the VIX had settled back, suggesting a return to relative stability. Read more to find out what to expect in the market next week.

what to expect in the market

Disclaimer:

Traders would do well to keep a close eye on upcoming economic data releases and corporate earnings reports. In this environment, flexibility and caution are essential.

Publication date:

2024-08-19 07:52:49 (GMT)

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