Summary

• Implied volatilities increased across asset classes last week amidst the geopolitical overhang created by the instability of commercial transit along the Strait of Hormuz and mixed signals from Iranian hard-liners undermining the country’s appetite for a resumption of peace talks.
• Although the SPX Index rallied last week, the VIX Index also rose, resulting in an unusual “spot up, vol up” move.
• Strong Q1 earnings and ongoing enthusiasm around AI catalyzed by the INTC-TSLA semiconductor/ cloud-infrastructure partnership has pushed stock dispersion towards record highs.

By Ed Tom

Cross-Asset Volatility: Implied volatilities increased across asset classes last week amidst the geopolitical overhang created by the instability of commercial transit along the Strait of Hormuz and mixed signals from Iranian

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