Stock Market’s Calm Belies Extreme Swings in Individual Shares
Market Intelligence Analysis
AI-PoweredThe stock market appears calm, but individual shares are experiencing extreme swings, with 47 instances of sharp selloffs among the 100 largest index members, according to Barclays. This trend is expected to continue this year, particularly with the rise of artificial-intelligence themed shares. Volatility is now centered around individual stocks rather than the overall market.
Market impact analysis based on bearish sentiment with 80% confidence.
Article Context
Between the 100 largest index members, there were 47 instances of sharp selloffs — specifically, a drop of five standard deviations or more, a move so rare it’s often considered an anomaly, according to Barclays. More of the same is probably ahead this year, Barclays says, in a call that underscores in part how dependent the benchmark gauge has become on the trajectory of shares related to the artificial-intelligence theme. “Single stocks have become where the center of gravity of volatility is,” Stefano Pascale, head of US equity derivatives research at Barclays, said in a phone interview.
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