"The STOXX Europe 600 was up 0.27% in early trading; Japan's Nikkei 225 was up 3.89%; and South Korea's KOSPI was up 4.1%. Even gold is now back above $5,000.It would be nice to think that this is the start of a sustained global rally in equities.But don't get too comfortable: The S&P has been a rollercoaster all year and Wall Street analysts don't expect it to end anytime soon."
"This "violent volatility" is being driven by investors who want to get out of software stocks- which they believe are vulnerable to being replaced by AI agents-and into almost any other industrial sector, according to Deutsche Bank. The software companies in the S&P 500 fell by 7.75% last week and are down 15% over the last two weeks, Jim Reid and his team at Deutsche Bank told clients this morning."
S&P 500 futures were flat after the index closed up 1.97% on Friday. Asian and European markets rose strongly, with the STOXX Europe 600 up 0.27%, Japan's Nikkei 225 up 3.89%, and South Korea's KOSPI up 4.1%. Gold moved back above $5,000. The S&P has exhibited rollercoaster behavior year-to-date as volatility has increased. The VIX fear index has risen throughout the year, and Goldman Sachs' Panic Index reached 9.22 out of 10. Investors are rotating out of software into other sectors over AI-related replacement concerns, and software stocks in the S&P plunged sharply, even as the index sits under 1% from its all-time high.
Read at Fortune
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