Wall Street traders are on guard, vividly remembering the August market meltdown.

Oct 12, 2024 17:03 JST (excerpt)
Officially, the financial markets are strong, with volatility standing out as well.
S&P 500 PER at the highest level since 2021 – the earnings season faces the next challenge.
Taking a broad look at the current financial markets, U.S. stocks are hitting record highs, corporate bonds show no signs of concern, and commodities are steadily supported by an optimistic view of the global economy.

However, delving deeper, the future quickly becomes unclear. Despite the outward appearance of strength, volatility is noticeable across almost all asset classes. The situations in August and September significantly worked against investors, catching traders off guard with a sharp market drop. Traders are scrambling to hedge and the cost of protection is being pushed up at a pace similar to the market.
Amy Wu Silverman, Derivatives Global Strategy Director at RBC Capital Markets, analyzes that the likelihood of a low-probability, very negative event occurring has increased. She stated, "After the rapid rise of VIX in August, the market normalized and hit record highs, but the fundamental 'concerns' remain elevated."