TechFlow news, July 20, foreign media analysis pointed out that the stock market's upward momentum is weakening, while optimistic earnings expectations are under close scrutiny, which are two signs indicating that the summer will be full of volatility. As investors face growing concerns, overall bullish sentiment is being challenged, and market volatility is quietly rising. The unwinding of artificial intelligence-related trades is triggering strong market rotation. Demand for hedging is rising rapidly. The Nations SkewDex index (measuring potential tail risks of the S&P 500 index) has surged to the highest level since April, which may further push up other volatility indicators.
Although the fear index remains below 20, far from reaching worrying levels, severe volatility in individual stocks is blurring the overall trend. Price volatility of core AI-related stocks driving momentum trading is intensifying, but unlike the first half of this year, the narrative of "rising stock prices, rising volatility" seems to no longer exist; instead, stock prices are plummeting sharply while volatility continues to climb. (Jin10)
