Foreign reports say the equity rally is losing steam and optimistic earnings
expectations are under fresh scrutiny, flagging a potentially volatile summer.
Liquidations of AI-related positions have prompted sharp sector rotation and a
rapid rise in hedging demand. The Nations SkewDex index, a gauge of S&P 500 tail
risk, has jumped to its highest since April, which could lift other volatility
measures. The panic index (VIX) remains below 20 and is not yet at alarming
levels, but extreme single-stock moves — especially among core AI names — are
increasing dispersion; unlike 1H’s pattern of rising prices with rising prices
volatility, recent trading shows steep price drops alongside sustained
volatility increases.
