The S&P 500 has rebounded more than 6 per cent since August 5, when a steep drop pushed the benchmark the US index to its biggest three-day slide in over two years. A rapid return to calm was also evident in the Cboe Volatility Index, or Wall Street’s “fear gauge,” which has retreated from last week’s four-year highs at a record pace, as per a Reuters report.
Some of 2024’s biggest winners have staged strong rebounds since August 5. Chipmaker Nvidia has bounced more than 20 per cent, while the Philadelphia SE Semiconductor index has gained more than 14 per cent. Small-cap shares, which had been strong performers in July, have also recovered from recent lows, with the Russell 2000 up nearly 5 per cent, Reuters reported.
Meanwhile, traders are unwinding bets that the Federal Reserve will need to deliver jumbo-sized rate cuts in September to stave off a recession.
The Fed’s plans could become clearer this week when Chair Jerome Powell speaks at the central bank’s annual economic policy symposium in Jackson Hole, Wyoming.
FAQs
Q1. What are key US stock market indexes?
A1. Key US stock market indexes are Nasdaq Composite, S&P 500, and Dow Jones.
Q2. What is Wall Street’s fear gauge?
A2. Wall Street’s “fear gauge” is Cboe Volatility Index.
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