S&P 500 — US Large Cap Index
FTSE 100 — UK Blue Chips
Euro Stoxx 50 — Eurozone Leaders
DAX 40 — German Equities
CAC 40 — French Market Index
Nikkei 225 — Japan Benchmark
Hang Seng — Hong Kong Index
Shanghai Composite — China Mainland
ASX 200 — Australian Market
TSX Composite — Canada Index
Nifty 50 — India Large Cap
STI Index — Singapore Market
KOSPI — South Korea Index
Bovespa — Brazil Equities
JSE Top 40 — South Africa Index
IPC Index — Mexico Market
BNY strategist David Tam warns that a renewed rise in rates volatility, as measured by the MOVE Index, could pressure U.S. equities, particularly technology and growth segments. He says investors may need to reduce equity exposure, shorten portfolio equity duration and favor defensive sectors.
Equities increasingly tied to MOVE
“Since 2023, and more recently since 2025, rates volatility has also been much more consequential for equity markets than in the past.”
“The S&P 500 has been strongly negatively correlated with rates volatility at about -84%, as measured by the MOVE Index. This pronounced correlation persists across tech-centered equity market segments.”
“The Nasdaq (-83%), tech (-82%), and semiconductors (-73%) are reacting far more to bond market volatility than many investors are positioned for.”
“Investors should act now. That means expanding risk budgets, reducing equity exposure, or actively reducing the equity duration of their portfolios by changing their sector allocation or size/style emphasis.”
“If rates volatility rises from here, leadership could change quickly, and portfolios concentrated in growth could see sharper swings than investors have grown used to.”
“In particular, investors should favor defensive sectors with large cash reserves on their balance sheets and consistent all-market revenue.”
