Markets reverse after Fed communication; stocks volatile

Wednesday, October 29, 2025 at 22:30 UTC+01:00 (+0100), United States, New York

News category : Market Structure and Financial Stability Events

Following policy and corporate headlines, global equity markets displayed sharp intraday swings on October 29. An initial rally after the Fed’s cut gave way to a rotation as cautious Fed commentary and mixed earnings headlines — including profit-taking in some mega-caps — prompted investors to pare exposures. The VIX spiked as traders bought protective options, while sector leadership shifted from rate-sensitive cyclicals to defensive and quality names. Market-structure desks noted that concentrated positions in a few large tech names amplified the moves, and that liquidity in certain options and single-stock futures experienced widening spreads during the reversal. The episode highlighted how quickly sentiment can flip when policy easing is coupled with conditional guidance.

Overall market impact

Mild bearish market impact - strength score : 72/100

Detailed breakdown of market impact over instruments, sectors, and asset classes

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Impacted instruments :

S&P 500

Nasdaq Composite

VIX (volatility index)

Equity options

Short-dated futures

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