LIVE MARKETS-Volatility under the surface

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VOLATILITY UNDER THE SURFACE

U.S. equities are taking a dive on Monday but Mark Hackett, chief market strategist for Nationwide, said in his latest research note that the S&P 500 .SPX has been trading this year in its tightest band since 2017, suggesting investor willingness to look beyond near-term noise.

The benchmark index has stayed "within a narrow 2.7% range for more than two months" and managed a weekly gain last week, which was its third of 2026, Hackett wrote.

But he cautions that investors need to look deeper because below the surface, "single stock volatility is quite elevated, with the average stock in the S&P 500 Index having a 14% change this year."

Having said that, he added that "breadth remains impressive, with the greatest percentage of S&P 500 Index constituents outperforming in more than 50 years."

Meanwhile, under the hood on Monday, while declining issues outnumbered advancers by a 2.61-to-1 ratio on the NYSE, the exchange showed 327 new highs and 162 new lows.

(Sinéad Carew)

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