Options markets are indicating high volatility in the software sector, particularly for the iShares Expanded Tech-Software Sector ETF (IGV), which saw a 30-day implied volatility around 41%, close to a recent 10-month high of 45%. This sign of expected sharp market swings comes despite a modest bounce. Moreover, IGV’s short interest remains significant at nearly 19%, one of the highest recorded levels. In the broader context, the tech sector has decreased approximately 10% since late October, contrasting with gains in energy, materials, consumer staples, and industrials, each up at least 10%. Given that technology comprises about one-third of the S&P 500, investors are keenly observing how struggling software stocks may impact overall index performance. For more updates, stay tuned: US Stock Market Today features a rise in the S&P 500, with semiconductors leading the recovery and Bitcoin showing signs of resurgence.
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