Investors brace for holiday-week volatility and positioning

Sunday, November 23, 2025 at 08:30 UTC+01:00 (+0100), United States / Global, New York / Global

News category : Market Structure and Financial Stability Events

Market strategists warned that the shortened U.S. trading week around Thanksgiving could produce outsized moves due to thinner liquidity, active rebalancing and elevated macro and policy uncertainty. With investors debating the timing of Fed easing and re-assessing AI-linked valuations after recent swings, the combination of positioning and a compressed calendar raised the chance of rapid price moves. Trading desks flagged higher option-implied volatilities and an increased appetite for short-dated protection. While thinner markets can amplify both up and down moves, some investors planned tactical reductions in size and increased use of hedges to manage execution risk during the holiday period.

Overall market impact

Light mixed market impact - strength score : 64/100

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

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Impacted instruments :

Major equity indices

Volatility indices (VIX)

Short-dated futures

ETF liquidity

Options skew

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