Market Volatility Signals Economic Uncertainty

Stocks Experiencing Unusual Volatility After Earnings, What Does It Mean?

The stock market has been experiencing an unusually high level of volatility following earnings reports, leaving investors questioning the reason behind this sudden trend. Despite the S&P 500 index closing at a record high above 5,000, volatility, as measured by the CBOE Volatility Index (VIX), has been on the rise rather than declining. This increase in volatility has coincided with the upward move of the S&P 500, leading Wall Street to become more skeptical. Even when companies report positive news, unexpected elements leave investors on edge. Matt Amberson, Principal at Option Research & Technology Services, states that “we’re climbing a wall of worry. There’s more worry than there should be given what the market is doing.”