Future Volatility in Stocks Will Be About Vaccines, Not a Bl

Future Volatility in Stocks Will Be About Vaccines, Not a Blue Wave


Traders on the floor of the New York Stock Exchange.
NYSE
Market volatility has cooled. If it reheats, it will have far more to do with the slow pace of vaccine distribution in the U.S. than the apparent blue wave in Congress.
The
Cboe Volatility Index,
or VIX, is falling as much as 11% on Wednesday as many stocks—especially cyclical ones—are rising, The
S&P 500
is up 1%. Falling volatility means a calmer market, or less price variance from the average price. With one Georgia Senate seat already going to Democratic candidate Raphael Warnock and the other likely to go to Democrat Jon Ossoff with 98% of the vote in, investors are now expecting heavy fiscal spending. That would spur economic activity and inflation.

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