Divided Markets Show Volatility's Return Is One-Sided Affair
- Bonds, FX unflappable as stocks panicked on tariff threat
- JPMorgan Asset is ‘looking through trade noise’ at growth
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Wall Street is struggling to reconcile currency and bond markets increasingly at odds with the roller coaster in stocks.
As China’s proposed retaliatory measures against Washington’s protectionist threats rattled equities Wednesday, bond and currency markets shrugged. The JPMorgan FX Volatility Index held comfortably below its 12-month average, even as the Cboe Volatility Index jumped to nearly double its level for the past year. Treasuries were steady. Unlike in the past, a plunge in the S&P 500 did little to rouse demand for long-dated bonds.