How the stock market works, ’60s cartoon edition

Signs are growing the Fed may shift away from loose monetary policy

The news from Venezuela, and another round of developments from across the world that may shape the course of markets over the next few months.

Stocks achieved records for the fourth consecutive session this morning as AI enthusiasm, robust corporate earnings, trade deal optimism and dovish monetary policy expectations encouraged risk-taking on Wall Street.

It’s unusual to see both the Dispersion Index and the Implied Correlation Index up at the same time – but stock implied volatility is climbing faster than index-level implied volatility. This is likely because risk is being repriced.