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  1. Goldman Sachs9 min

    Hidden Volatility

    Brian Garrett, Chris Hussey

    Despite a S&P 500 rally driven by retail call-option activity that has inverted standard volatility skew, market strategists are utilizing inverted skew arbitrage and protective put strategies to navigate heightened single-stock risks amid potential government shutdown impacts. Although the October "boogeyman" is historically muted outside of major crises, the concentration of mega-cap tech names and upcoming AI catalysts are expected to be the primary drivers of volatility. With immediate shutdown concerns already factored into a modest market gain, attention is shifting toward Federal Reserve minutes and the delayed Non-Farm Payrolls report to guide the near-term economic outlook.