US Equities spent most of the day in the red, then moved even lower with about an hour left in the cash equity market trading session. The late day decline in stock prices seemed to coincide with remarks from President Trump suggesting that he didn’t think that Speaker of the House, Nancy Pelosi, wanted a stimulus bill prior to the November 3rd election. Whether the two events, are related, major US Indexes did close near the day’s low levels while implied volatility in the options markets rose.
WTI Crude Oil, CME Group grains markets and Gold and Silver futures prices were all little changed on the day. US Treasury futures prices were lower throughout the yield curve, indicating slightly higher yields.
As the stock market has sold-off over the last week or so, implied volatility in the equity indexes has, somewhat quietly, increased rather substantially. As you can see in the QuikStrike images below, 30-Day implied volatility is trading above a one standard deviation move in the E-mini S&P 500 and near the one standard deviation move in the Nasdaq-100 over the last 3 months.