Quadruple Witching Hits Stock Market, Sparking Bursts of Trading
- June’s trading volume poised for the second-highest on record
- If history is any guide, market may head lower after the event
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Traders struggling to keep up with gyrations in U.S. stocks just got jolted by a surge of trading volume and wild price swings.
Transactions in stocks spiked amid a quarterly event known as quadruple witching, when options and futures on indexes and equities expire. More than 16 billion shares changed hands, 30% above the average in the past three months, while the S&P 500 reversed earlier gains to close the session lower amid renewed concern over coronavirus reinfections.