Volatility

Despite debt ceiling concerns, the market remains stable and volatility isn't much higher this morning. However, rallies in the dollar and Treasury yields after hawkish comments from Fed officials appear to be halting progress in the stock market, and Lowe's outlook disappointed.

Debt ceiling negotiations hang over the market as investors await today's meeting between Biden and McCarthy. There's also a host of earnings this week including from major retailers and chip giant Nvidia (NVDA). Tech stocks could come under pressure today as Apple gets downgraded.

The debt ceiling and Fed Chairman Jerome Powell are likely to be the main focus this morning with stocks on pace for their best week since March and the SPX at nine-month highs. Watch weekend debt ceiling talks for insight into how stocks might open next Monday.

Walmart's solid earnings and continued hopes for a debt ceiling solution helped stocks build on yesterday's rally ahead of the open Thursday. Risk-on seems to be the mood, with bond yields rising and volatility stepping back. Fed Chairman Jerome Powell is scheduled to make remarks Friday morning.

Sentiment turned more positive early Wednesday following a disappointing Tuesday, as investors appeared to sense progress in debt ceiling negotiations. Still, retail earnings are setting a bit of a sour tone, with Target the latest big store to raise concern about consumer health.

Stocks sank before the open on a big revenue miss from Home Depot and Washington's continued debt ceiling waiting game.

With debt ceiling talks still in motion and FedSpeak trickling in, investors look positive before the open.

It looks like a quiet Friday shaping up on Wall Street as high-level debt negotiations got postponed until next week and investors await consumer sentiment data. The market hasn't gotten much traction from yesterday's cooler producer price data, and is on track for a mixed week.

Regional banking stocks are back in the news today following a deposit decline at PacWest, which weighed on major indexes early Thursday. However, signs of progress on the inflation front led to hopes for a Fed pause and may support the market on any shifts lower.

Today's April CPI data came in just as analysts had expected, rising 0.4% from March. The market appeared to welcome the numbers, turning around early premarket losses, and Treasury yields fell on hopes the data could persuade the Fed to consider pausing rate hikes.

Wall Street is on tenterhooks this morning ahead of tomorrow's critical April Consumer Price Index (CPI) report and the start of White House talks about the debt ceiling today. The market barely moved yesterday, and a narrow trading range may be the case again today ahead of the data.

Inflation data later this week, along with Disney earnings and the debt ceiling are all in focus as stocks open Monday following last week's stronger-than-expected April jobs report and another Fed rate hike. There's a heavy schedule of Fed speakers ahead, as well.

Stocks are getting a Friday rebound today after a relatively robust jobs report and strong earnings from Apple. Regional bank shares, which got crushed Thursday, clawed back some losses ahead of the open. Next week brings inflation data and Disney earnings.

Regional bank stocks came back under pressure this morning after yesterday's rate hike, which raised new fears about pressure on the banking industry and possible recession. Apple reports after the close today, and the ECB raised rates this morning. The April jobs report bows tomorrow.

Fed delivers much-anticipated quarter-point rate increase and hints this could be the cycle’s last hike.

With unanimity, the Federal Open Market Committee raised the fed funds rate by 25 basis points in May and signaled that further tightening will depend on various economic factors.

> Trading could be a bit subdued ahead of the FOMC decision this afternoon. Then the focus turns to Fed Chairman Powell's press conference, the tone of which could help drive trading after that. The futures market builds in high probability that this is the last rate hike of the cycle.

Trading could be subdued today and early tomorrow as investors position themselves ahead of the FOMC interest rate decision Wednesday afternoon. The market has built in about a 94% chance that there'll be a 25-basis-point rate hike, but the Fed's next step is less clear.

Stocks face a pivotal week with an FOMC meeting, Apple earnings, and a jobs report. Some of the other household names we'll hear from in coming days include Uber, Starbucks, and Ford. A rate hike seems highly likely, but investors will want to hear what the Fed thinks is next.

Although the House narrowly approved a bill designed to jumpstart negotiations, the issue is far from resolved.

Stocks are taking a breather early Friday after Thursday's fast-paced rally. The tech sector had been having a very strong week until Amazon forecast slower cloud growth, and that appeared to bite into Wall Street's general positive sentiment. Today's PCE inflation data was as expected.

Stocks got a lift early Thursday after META reported solid earnings, but there's uncertainty whether the strength can last after stocks couldn't hold gains yesterday following MSFT earnings. Fresh data suggests the U.S. economy continues to slow. Amazon reports after the bell.

Protective puts are one way to hedge stocks against a significant price drop. But investors should consider factors such as time decay and volatility.

During a major economic event, it may be a good time to revisit your portfolio. It could mean rethinking long-term objectives, reexamining your risk tolerance, or taking a moment to self-reflect.

Trying to figure out your financial planning during a time of market volatility? Learn how to stick to your financial goals.

Stocks beat an immediate retreat after the Fed raised rates by 25 basis points Wednesday, but that quickly changed as investors dissected the Fed’s statement and a press conference from Fed Chairman Jerome Powell. There seems to be hope that the long upward movement in rates could be approaching a finale.

When companies report quarterly earnings, the stakes can be high. A single earnings miss can dent an investment portfolio that’s concentrated. Here are a few ideas for managing idiosyncratic risk.

The market gyrated after the Fed’s 50-basis-point rate hike and economic projections, finishing lower on the day. As investors eyeballed the central bank’s dot-plot of future rate projections, the picture seemed dimmer for Wall Street.

A good defense is the best offense, right? It’s sometimes true for investing as well. Learn more about defensive stocks and defensive sector investing.

In technical analysis, many traders start with trend and momentum indicators. But don’t forget volatility indicators, which track the magnitude of price movements.

Traders can use the beta-weighting tool on the thinkorswim® platform to view the overall risk of all their positions as a whole instead of looking at risks of individual assets.

The average true range (ATR) indicator could be a new arrow in your quiver of technical analysis tools. Learn how the ATR indicator helps traders set their exit strategy.

What is a black swan event? Learn about black swan events and how you can attempt to protect yourself and your portfolio from adverse shocks.

Market volatility and market inflation can destroy investment value. Here’s how investors can account for both in their long-term portfolio strategy.

CD investing isn’t limited to walking into your local bank branch and opening an account. Learn the potential benefits and risks of brokered CDs and bank CDs.

Earnings season can create volatility in price movement. Learn how to spot potential options trade candidates by assessing straddle price versus average earnings moves.

Diversification isn’t just about stocks, bonds, and cash. When hedging risk for an options portfolio, think price, time, and volatility.

When you look beneath the Analyze tab on thinkorswim®, you may find some features you may not have known about.

Understanding the nature of volatility regimes and recognizing when it’s shifting could help unlock potential trading opportunities.

Sharpe ratio is a metric that can help you compare investments from a risk-adjusted return perspective. Learn about calculating Sharpe ratios here.

Understanding the relationships between stocks, bonds, commodities, and currencies can help you identify economic trends and better manage your investments.

Want to try your hand at short-term trading? Consider swing trading: holding positions for a few days to try to capture a larger intermediate-term price swing.

Learn how the Risk Profile tool in the thinkorswim platform can help options traders visualize different scenarios and make trading decisions a little simpler.

With many options trading strategies to choose from, how do you find the right one? Consider a three-step process to help with your decision.

Options straddles and strangles are a way for advanced traders to get long or short exposure to volatility (vega), but the volatility needs to be weighted against time decay (theta). Here are the basics.

Do the headwinds of time decay turn you off from buying single options on volatile stocks? Find out how you may be able to turn the headwinds into tailwinds by trading those stock moves.

Successful traders have rules and stick to them, whether those rules are based on volatility, probability, technical analysis, or other factors.

Return on capital and liquidity mean specific things in finance. But they can mean something different to an option trader. Read this options trading terminology guide to find out.

Trying to select the right options strategies, strikes, and expirations? Learn how to rank volatility using IV percentiles and see if changes are normal or unusual.

2020 was a challenging year for investors. But 2021 might be a challenge as well—for different reasons. Here’s a look at the opportunities and risks.

Starting the new year fresh can be a great idea. Despite the drop and pop we saw last year, it may still be a good time to think about resetting your trading strategies and get a fresh start.

Selling covered calls and cash-secured puts can help investors generate additional income, increase their probability of success, decrease their volatility of returns, and lower their overall risk when compared to buying stock.

When faced with high volatility, many options traders turn to these five strategies designed to capitalize on elevated volatility levels.

Like most financial advisors, robo-advisors recommend portfolios based on investors’ long-term financial goals, time horizon, and risk tolerance. Because robo-advisors generally use algorithms to make investment decisions, they avoid emotions and generally charge lower fees.

How can skew offer insight into market sentiment? Implied volatility between out-of-the-money put and call options is almost always skewed depending on whether there’s panic to the downside or upside.

The “financial independence, retire early” (FIRE) movement was all the rage in 2018 and 2019, but the COVID-19 pandemic has changed the way we think about a lot of things. Has the upheaval in 2020 changed the desire to FIRE? And how might retirement plans be affected by the current situation?

Special-purpose acquisition companies (SPACs) have been around awhile, but they’ve gotten some new attention in 2020. Here’s a look at the mechanics and risks for investors involved in blank-check companies.

Are you an investor who follows the daily or weekly ebb and flow of your retirement accounts? If so, market downturns might be a bit unsettling at times. But what if instead of focusing on today’s bottom line you focused instead on outcomes—your progress toward your goals? Here’s how.

The escalating coronavirus pandemic that triggered a bear market in U.S. stocks in early 2020 looks to have tipped us into a possible recession. How can you prepare for and invest during a recession and bear market?

Learn about the Bollinger Bands technical indicator and how it can help identify volatility and overbought/oversold conditions in stocks and indices.

The monthly U.S. Employment Situation report—commonly called the jobs report—is perhaps the most closely watched fundamental indicator for traders and investors. Here’s why.

Tariffs have been part of American economic history from the country’s origins. Are tariffs good or bad for investors?

Should you switch from trading long options strategies to short options strategies when volatility levels are high? Sometimes prices are high for a reason.

All investments experience market volatility, which is why retirement portfolio strategies should focus on allocating assets across investments of different risk levels.

When volatility rears its occasional head, some investors consider cashing out stocks. But are there better ways to ride out market volatility? Cameron May explains.

What is a smart-beta ETF? Explore what qualifies as a smart-beta fund and what systems define this type of ETF.

In these times of stock market volatility, many investors are looking for yield in fixed income and dividend stocks. However, there’s risk in these investments, too, so know what you’re getting into.

As trade war fears heat up between the U.S. and some of its major trading partners, some investors may be looking for tariff protection. Here are some things to consider as you aim for a “trade-war-proof” portfolio.

When volatility falls, many option traders turn to these five strategies designed to capitalize on depressed volatility levels.

Trading with your emotions during times of market volatility? Explore whether a robo-advisor may be able to help.

Looking for volatility exposure? Learn about volatility products including VIX options.

Temporarily protect your retirement against volatility risk. Here are some retirement- planning strategies.

Got stock options? Set goals and have a plan. Here are three steps to consider for your equity compensation plan.

Volatility data is focused on the long term. Traders are focused on the short term. There is a way to convert volatility data so it can be useful for the trader.

Does volatility worry you when it comes to the stock you've received as compensation? Learn tips to help manage this valid concern.

Here’s why you need to keep your retirement money growing even when you’re already using it (hint: inflation and longevity).

New to stock investing? Learn the basics of stocks, earnings, dividends, and how a stock’s value is determined.

The recent wave of volatility might serve as a reminder of the importance of using a diversified investment trading approach. Here are some tips to avoid possible traps in these choppy markets.

Using volatility and market statistics is one of many keys to successful stock market trading. Learn how to incorporate them into your investment strategy.

With the earnings calendar tools available on the TD Ameritrade thinkorswim Platform, you can be in the know when it comes to the earnings season.

Learn about the dynamics of foreign exchange volatility, and where to find currency volatility data.

The U.S. presidential election cycle theory of the stock market says that the market moves based on the year of the president's term. Is there any proof?

Implied volatility tends to be mean reverting. But what does that really mean? Learn how options traders can potentially benefit from monitoring implied volat

ETFs have matured but they’re not done evolving. Morningstar’s Scott Burns urges income-seeking investors to expand their minds and their research.

Volatility’s tendency to level out after a spike can present strategy opportunities, especially selling strategies found with strangles and iron condors.

Use volatility to pick an options strategy to speculate on a given direction, rather than to replace fundamental analysis and charts to determine potential.

Trying to time the market? Add sentiment analysis to your stock trading approach to help narrow the time horizon around an underlying security’s move.

Check out short-term options pricing to gain a sense of how the underlying stock could move around an earnings release. You can track straddles or use the TD

Out-of-the-money call options may be hard to trade when volatility is low, but there are good opportunities for cheaper options trades during market extremes.