Volatility-linked investment strategies may sell $76bn in US stocks if S&P 500 volatility persists.

Volatility-linked investment strategies are selling off US stocks as market volatility increases, potentially exacerbating declines if the S&P 500 experiences continued volatility. Analysts predict these funds could sell $45bn in stocks if daily S&P 500 moves remain at 1% or more over two weeks. Other computer-driven strategies following volatility could sell $31bn in equities if the S&P 500 drops by an additional 2%.

April 18, 2024
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