Index Hedging Jumps, But Stock Optimism Persists

Implied volatility rose across asset classes last week as bond yields spiked on higher inflation expectations. In the US, small-cap volatility led the move, with the RVX Index up 2.6 points to 25%, putting it at the 76th percentile of its one-year range. The article points to a firmer risk-off tone tied to rate and inflation pressure rather than a single asset-specific event.

Analysis

Implied volatility rose across asset classes last week as bond yields spiked on higher inflation expectations. In the US, small-cap volatility led the move, with the RVX Index up 2.6 points to 25%, putting it at the 76th percentile of its one-year range. The article points to a firmer risk-off tone tied to rate and inflation pressure rather than a single asset-specific event.