The Markets Why Stocks Are Getting Wild
20 snips
Nov 25, 2025 
Brian Garrett, head of equity execution in Global Banking & Markets, digs into the current volatility in U.S. equities. He explains how Fed commentary drives market swings and discusses investor shifts towards defensive sectors like healthcare. Brian highlights that while VIX at 24 suggests moderate risk, real market movements have been more volatile. He proposes practical hedges, including VIX call spreads, and emphasizes the importance of the upcoming December Fed decision in shaping market trends.
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Fed Expectations Drive Stock Swings
- Market moves are being driven primarily by expectations around the Fed's December decision.
- Goldman Sachs believes a December rate cut is likely and that could trigger a relief rally and lower vol.
Rotation From High-Vol Tech To Defensives
- Investors remain net long equities but are rotating from high-vol tech into defensive sectors.
- Positioning has shifted toward healthcare, financials, and industrials rather than concentrated MAG-10 exposure.
Volatility Reduces Liquidity, Amplifying Selling
- Rising equity vol reduces liquidity, creating a feedback loop where vol begets more vol.
- Systematic momentum signals may force large, algorithmic selling of tens of billions of dollars.