Despite a recent easing of panic, global stock markets, including those in America, Asia, and Europe, show persistent volatility. Day-to-day drops of over one percent are common.
The VIX volatility index, though down from its peak, remains high, suggesting investor apprehension. High gold prices also reflect investors shedding risk and anticipating a protracted economic slump.
The article's title focuses on the vulnerability of American tech stocks, a key component of the overall market volatility. While the article doesn't delve deeply into reasons for this vulnerability, the context implies it is part of a broader market uncertainty.
As the panic fades, investors’ nerves are still jangling. For the time being, stockmarkets have stopped convulsing and the prices of American Treasury bonds are no longer in freefall. Yet share indices across America, Asia and Europe have hardly recovered their poise (see chart 1); instead, day-to-day drops of a percentage point or more have become unremarkable. The VIX index—Wall Street’s “fear gauge”, which measures expected volatility using the market price of insurance against it—has fallen from its nerve-shredding peak reached a fortnight ago. It is nevertheless at a level last seen in 2022, amid a grinding bear market (see chart 2). The price of gold has been breaking record after record. Investors, in other words, are offloading risk wherever they can and preparing for a drawn-out slump.
If you often open multiple tabs and struggle to keep track of them, Tabs Reminder is the solution you need. Tabs Reminder lets you set reminders for tabs so you can close them and get notified about them later. Never lose track of important tabs again with Tabs Reminder!
Try our Chrome extension today!
Share this article with your
friends and colleagues.
Earn points from views and
referrals who sign up.
Learn more