US stock market: Top stocks to watch out on Monday, list of key factors to drive S&P 500, Dow Jones, Nasdaq
US stock market indices S&P 500, Dow Jones Industrial Average, and Nasdaq will look to shrug off volatility as investors are keeping eyes on inflation data, corporate earnings and presidential polls.
Following months of placid trading, U.S. stock volatility has surged this month as a run of alarming data coincided with the unwinding of a massive, yen-fueled carry trade to deal equities their worst selloff of the year. The S&P 500 is still down around 6 per cent from a record high set last month, even after making up ground in a series of rallies after Monday’s crushing selloff.
US Economy
At issue for many investors is the trajectory of the U.S. economy. After months of betting on an economic soft landing, investors rushed to price in the risk of a more severe downturn, following weaker-than-expected manufacturing and employment data last week.
Though stocks have rallied in recent days, traders believe it will be a while before calm returns to markets. Indeed, the historical behavior of the Cboe Volatility Index — which saw its biggest one-day jump ever on Monday — shows that surges of volatility usually take months to dissipate.
Known as Wall Street’s fear gauge, the index measures demand for options protection from market swings. When it closes above 35 — an elevated level that it topped on Monday — the index has taken 170 sessions on average to return to 17.6, its long-term median and a level associated with far less extreme investor anxiety, a Reuters analysis showed.
US Market Forecast
One potential
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