Posted 12/20/2023, 9:08:00 PM
Stocks Plunge Suddenly on Light Holiday Trading
- The S&P 500 and Dow Jones fell sharply, erasing earlier gains, for no clear reason on light holiday trading volume
- The VIX volatility index spiked over 7% during the selloff
- End-of-year light trading volume can lead to increased volatility as traders take profits
- There was no new narrative behind today's drop - it was likely profit-taking with low volume
- Big end-of-year drops have happened before for no reason - in 2018, 2019, and just two weeks ago