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The S&P 500 logged 38 new highs and 37 new lows, while the Nasdaq recorded 16 new highs and a staggering 484 new lows, signaling a broader market deterioration. The CBOE Volatility Index (VIX) climbed 2.35 points to hit a two-month high, reflecting growing investor anxiety.
The Russell 2000 index of small-cap stocks fell 2%, with investors increasingly worried about domestic economic resilience. Traders are now betting on increased rate cuts, with futures pricing in at least three 25-basis-point reductions from the Federal Reserve by December, up from two just a day earlier.
What’s Next for Traders?
With trade tensions escalating, markets will closely watch developments between the U.S. and its trading partners. New York Fed President John Williams’ speech later in the day could provide insight into the central bank’s stance on rate policy. Inflation risks remain in focus, as tariffs could drive higher costs for consumers and businesses.
Safe-haven assets like gold saw renewed demand, lifting bullion miners such as Sibanye Stillwater by 1.7%. Given the uncertain economic backdrop, traders will monitor upcoming economic data and corporate earnings to assess potential downside risks and opportunities.
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