{
  "id": 12190982,
  "title": "S&P 500 volatility stays near lows despite rising Treasury yields: Why Wall Street is cautious",
  "url": "https://urgent.news/2026/10/05/s-p-500-volatility-stays-near-lows-despite-rising-treasury-yields-why",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-05T16:23:05.000Z",
  "source": {
    "name": "Hindustan Times - World News",
    "slug": "hindustan-times-world-news",
    "url": "https://www.hindustantimes.com/world-news/us-news/sp-500-volatility-stays-near-lows-despite-rising-treasury-yields-why-wall-street-is-cautious-101791216075656.html"
  },
  "original_language": "en",
  "account": "Despite rising US Treasury yields and major geopolitical risks, including two wars and upcoming elections in France, Brazil, and the US, Wall Street is exhibiting surprisingly low volatility. The S&P 500's volatility remains close to five-year lows, as individual stocks are moving in different directions, keeping overall index swings relatively small. Traders are now focusing on cross-market relationships, as correlations between asset classes have increased, making combinations of stocks, currencies, interest rates, and other markets more attractive.\n\nThe gap between stock and bond volatility has become unusually large, with the ratio between the VIX and the ICE BofA MOVE Index falling to its lowest level in nearly two years. This makes traditional equity hedges less useful, as the VIX is not reacting strongly to bigger moves in interest rates. Maven Securities notes that higher bond volatility has not yet spread to stocks, with low realized correlation between individual stocks reducing the size of moves in the overall S&P 500 index.\n\nDemand for S&P 500 protection is weak, with investors not buying large amounts of options designed to protect against a stock-market fall. JPMorgan Chase derivatives strategists report an unusual asymmetrical relationship between stocks and Treasury yields, with falling yields positively affecting stocks more than rising yields negatively impacting them. As a result, the S&P 500 may continue to benefit from the rising Treasury yields, even as the election cycle brings more potential volatility in October. Despite the low volatility, Wall Street remains cautious, as a sudden political or economic shock could quickly change the market dynamics.",
  "summary": "S&P 500 volatility stays near five-year lows despite rising Treasury yields, as Wall Street weighs election risks, stock options and market uncertainty.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Cointelegraph",
        "title": "Treasury yields at 5% threaten extending Bitcoin’s best quarter since 2017",
        "url": "https://urgent.news/2026/10/05/treasury-yields-at-5-threaten-extending-bitcoins-best-quarter-since",
        "published": "2026-10-05T16:53:08.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}