Stock slide resumes
Stock and futures volumes picked-up in early afternoon trading as investors paid greater attention to building Russian forces on the East Ukrainian border. As of 2:10 pm ET, the S&P 500 index has lost 1.1% while an earlier rise in 10-year U.S. Treasury yields has caved in to safety buying among investors.
Market reports continue to pit lingering concerns over the potential for an early rise in interest rates as a primary driver of negative sentiment. If that’s the case, investors now have additional headline risk to fret about as concerns over patients suffering from Ebola virus surface. The CBOE Volatility Index (VIX) has also turned from moving lower to moving higher as investors step up demand for protection against an escalation of selling.
The following chart shows the unusual jump in futures volume around 12:45pm. Gold prices, which had hitherto been lower as stocks sat weaker throughout the day, have since turned mildly higher adding $3.00 to $1291.20. Economic data is also taking a backseat as genuine concerns for a market correction grip investors’ nerves. An earlier strong ISM service report was completely lost as sentiment got the better of risk takers.
Chart – Volatility reaches intraday high as plethora of risk-off catalysts hit home