Traders Bemoaning Lack of Shock, Awe in Markets Finally Get Some
- Friday’s selloff has traits common with past volatility shifts
- Investors enduring a third day of elevated turbulence.
What Drove the S&P 500 to a Two-Month Low?
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Traders who complained all summer about markets stuck in a zombie state are getting what they wanted, and probably will be for a while.
Eruptions of volatility this big rarely go away quickly. By one measure, the selloff ripping equities represents the sixth most violent rupture to market calm in history, with the S&P 500 Index’s drop of 2.5 percent exceeding its daily move in the prior month by a factor of 10. Every time that happened in the past, turbulence took its time petering out.