Market volatility has been very concentrated:
The top 5 most volatile days have contributed to ~50% of the US stock market’s total volatility in 2025.
This means half of all volatility this year came from just 5 trading sessions, the highest concentration since 1987.
This percentage is TWICE as large as in 2024 and 5 TIMES bigger than in 2023.
Since 2000, only 2 other years saw this figure above 40%; 2008 and 2020.
This shows the market is extremely sensitive, with investors reacting strongly to both positive and negative news.
The market has become hypersensitive.