Market Cap Plummet: Traders Point to Zero-Day Options as Cause
TL;DR Summary
The S&P 500 experienced a significant market sell-off, wiping out approximately $600 billion in market cap within two hours. The recent rally, driven by investor optimism surrounding anticipated rate cuts in 2024, came to a halt as investors likely moved to take profits following a massive surge in equities. Despite the Federal Reserve's plan to cut rates, macroeconomic uncertainties and sustained record-high policy rates contributed to the sell-off. The Nasdaq 100 ETF also experienced significant outflows.
- S&P 500 wipes $600 billion of market cap in 2 hours; What's going on? Finbold - Finance in Bold
- What Killed the US Stock Rally? Traders Blame Zero-Day Options (0DTE) Bloomberg
- Vilified Zero-Day Options Blamed by Traders for S&P Decline Yahoo Finance
- When it comes to explaining market sell-offs, look for the simplest explanation CNBC
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