Eerie Calm in S&P 500 Signals Historic Rally Has Staying Power
- Past week featured the tamest daily swings in half a year
- Mild moves signal market isn’t overheated after November gains
A trader works on the floor of the New York Stock Exchange (NYSE) in New York.
Photographer: Michael Nagle/BloombergThis article is for subscribers only.
Beneath the adrenaline rush of November’s stock-market surge is an eerie calm that points to more gains for equities investors, at least through the end of the year.
The S&P 500 Index posted an average daily move of 0.3% in either direction last week, its tamest swings in half a year, as the market lost some momentum toward the end of its second-best November since 1980. The Cboe Volatility Index, also known as the VIX, fell toward the year’s lowest levels Friday, and stocks rose after Federal Reserve Chair Jerome Powell gave his clearest signal yet that officials have finished raising interest rates.