24 March 2025 | S&P 500

Bloomberg: US data fuels S&P 500 options volatility concerns

Bloomberg: US data fuels S&P 500 options volatility concerns

As Bloomberg notes, investors expect greater volatility in S&P 500 options before the release of new economic data. This signals a higher demand for protection against market swings.

Concerns are centered around March 31, with the release of the Core CPI Index, and April 4, when unemployment data will be published. These indicators will reflect how the economy is responding to President Trump's trade policies, according to analysts.

Despite the rapid 10% decline in the S&P 500, the market remained relatively calm. The Cboe Volatility Index (VIX) didn't react as strongly as in the August and December selloffs.

UBS's Max Grinacoff believes investor demand for downside protection is unlikely to change significantly in the coming weeks. He suggests volatility is unlikely to rise substantially from current levels.

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