Hedging Demand Spikes Amid AI-Driven Market Rotation

Hedging Demand Spikes Amid AI-Driven Market Rotation

Implied volatilities gained across asset classes last week amidst escalating geopolitical tensions in the Middle East.

VOL REPORT: Hedging Demand Spikes Amid AI-Driven Market Rotation

Link to Report: Macro Volatility Digest WHAT STANDS OUT: The accelerating sell-off in chip stocks last week renewed worries over the bigger AI trade, leading to weakness in both the Tech sector as well as the broader SPX® Index. While SPX 1M implied volatility gained 2.6 pts wk/wk, QQQ 1M implied volatility jumped 3.8 pts, and SMH (Semis ETF) 1M implied volatility jumped 5 pts to a 1-year high of 59%. The SMH-SPX 1M implied volatility spread wi…