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S&P 500 Trading Volume Spikes at Wall Street Close: Markets Wrap

S&P 500 Trading Volume Spikes at Wall Street Close: Markets Wrap
(Bloomberg) -- Wall Street’s massive expiration of options not only left stock traders more cautious, it also drove one of the leaders of the bull market to a roller-coaster ride. Volume soared at the close of trading.Most Read from BloombergAt Blackstone’s $339 Billion Property Arm, the Honeymoon Is OverCDK Hackers Want Millions in Ransom to End Car Dealership OutageCar Dealers Reel From Cyberattack on $1.2 Trillion MarketApple Won’t Roll Out AI Tech In EU Market Over Regulatory ConcernsIt was

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S&P 500 Trading Volume Spikes at Wall Street Close: Markets Wrap

Wall Street’s massive expiration of options not only left stock traders more cautious, it also drove one of the leaders of the bull market to a roller-coaster ride. Volume soared at the close of trading.

It was estimated that $5.5 trillion expired during the quarterly event ominously known as “triple witching” in which derivatives contracts tied to equities, index options and futures mature. Nearly 18 billion shares changed hands on US exchanges Friday. That’s over 55% above the three-month average.

This time around, Nvidia Corp. played an added role. The value of contracts tied to the chipmaker due Friday was the second-largest of any underlying asset, lagging only the S&P 500. And the expiration coincided with index rebalancing by S&P Dow Jones Indices.

As the contracts disappear, investors adjust their positions, adding a burst of volume capable of swinging individual holdings. The S&P 500 edged lower to around 5,465. Nvidia almost erased a plunge of about 5% before pushing lower again. It erased over $220 billion in value in two days. Apple Inc. also fell.

Friday’s options event came at a critical juncture for markets positioning for the second half of 2024 and the Federal Reserve’s next steps. Data showed US services activity picked up early this month to the fastest pace in more than two years. Separately, sales of existing homes fell for a third straight month.

Some of the main moves in markets:
Stocks
The S&P 500 fell 0.2% as of 4 p.m. New York time
The Nasdaq 100 fell 0.3%
The Dow Jones Industrial Average was little changed
The MSCI World Index fell 0.3%
Currencies
The Bloomberg Dollar Spot Index was little changed
The euro was little changed at $1.0692
The British pound was little changed at $1.2649
The Japanese yen fell 0.4% to 159.58 per dollar
Cryptocurrencies
Bitcoin fell 1.2% to $64,301.01
Ether rose 0.4% to $3,538.53
Bonds
The yield on 10-year Treasuries was little changed at 4.25%
Germany’s 10-year yield declined two basis points to 2.41%
Britain’s 10-year yield advanced three basis points to 4.08%
Commodities
West Texas Intermediate crude fell 0.8% to $80.63 a barrel
Spot gold fell 1.6% to $2,322.32 an ounce

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