The end of May saw a rush of volatility, as if the markets were suffering from seasonal allergies.
The S&P 500 index rose or fell by more than 1% in three of the four trading days in May’s final week, following the Memorial Day holiday, while the Dow Jones Industrial Average gained or lost at least 200 points every session.
Then, having gotten the bugs out of their system with one big sneeze, markets quietly started marching higher.
From May 29th through early Friday afternoon, the Dow gained almost 900 points, while the S&P 500 added nearly 100. The Nasdaq Composite index and the Russell 2000 small cap bellwether both hit all-time highs. And the CBOE Volatility index—the VIX—held fairly steady, about 13 or so. That’s much higher than its all-time low of 9.14 last November, but well below its average around 20.
So, it looks like markets are settling down a bit. Or are they?