26 June 2025 | S&P 500

Investors expect another August market rout — Reuters

Investors expect another August market rout — Reuters

Reuters reports that big investors expect a repeat of last August's market rout. Then concerns over slower global growth sparked increased volatility in asset prices worldwide. Tensions in the Middle East, US tariffs, and fluctuating oil prices could lead to a similar situation this year.

According to UBS strategists, traders are betting on a higher frequency of single-day stock market volatility spikes. 

Asset managers say they are stepping up hedging against risks amid global geopolitical tensions and doubts whether the US could strike deals with China and the EU before the July 9 deadline.

HSBC Asset Management notes that Donald Trump’s erratic policies pose a serious threat to stock markets. 

However, investors keep ignoring these risk despite the imminent end of the US tariff pause and little progress on trade deals. Global stocks have hit new record highs this week. In addition, the gauge of the S&P 500's expected volatility (VIX) is below 18, down from 52 in April.

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