Increased Trading Volume in S&P 500 Signals Strong Activity at Wall Street Closing: Market Recap

Money | June 21, 2024, 2:44 p.m.

Wall Street experienced a surge in trading volume due to the quarterly expiration of options, with an estimated $5.5 trillion set to expire in the "triple witching" event. Nvidia Corp. played a significant role, with contracts tied to the chipmaker being the second-largest in value, following the S&P 500. As these contracts expired, investors adjusted their positions, leading to heightened volatility in the market. Nvidia saw dramatic swings, losing over $200 billion in two days, while Apple Inc. also fell. The options event coincided with market positioning for the second half of 2024 and the Federal Reserve's next steps. Amidst concerns about a potential bubble in the tech sector, investors are advised to remain cautious and diversify their portfolios. The article also highlights corporate actions, such as Apple withholding technologies in the EU, AMC Entertainment negotiating debt reduction, and American Airlines suspending pilot training. Overall, investors are urged to brace for a time of transition and volatility in the market.