The Kobeissi Letter posted on X, highlighting a significant increase in market volatility. The average volatility of individual stocks within the S&P 500 has surged to seven times higher than the volatility of the entire index. This ratio has more than doubled over the past two weeks, indicating a sharp rise in market fluctuations.
Since 2022, there have been only two instances where single stock volatility reached such elevated levels, specifically in December 2024 and October 2025. The current trend suggests that volatility is rapidly returning to the market, posing challenges for investors and analysts alike.