One factor that may be partly behind the S&P 500’s curious action this week
Investors work during the initial public offering (IPO) of DPC Holdings Ltd. at the New York Stock Exchange (NYSE) on Thursday, June 25, 2026, in New York, United States.
Michael Nagle | Bloomberg | Getty Images
Micron rose by double digits following the gains.
Positive GDP and inflation data.
The apple fell big.
There were many reasons why stocks made a big move on Thursday, but S&P 500 It ended Wednesday almost exactly where it closed.
Investors alongside Micron overshadowed the overnight rally, causing Nasdaq 100 futures to tumble 3% from their initial peak, then buying the dip in the second half. The technology-heavy index finished the session with a 3/4 percent increase.
This wild ride to nowhere may be a sign that institutional market makers have options that pay off with volatility; This means they will profit after big moves – buying putbacks when the market drops and selling puts if the market fluctuates.
This could keep stocks in a range that options traders call “long gamma.” Dealers who normally sell options may be more comfortable owning cheaper, out-of-the-money bets as they approach expiration, which will happen at the monthly options expiration on Tuesday, June 30.
S&P 500, YTD
“Right now, dealers are long gamma on both the index and the top stocks, so that provides stability,” said Brent Kochuba, founder of options analytics service SpotGamma. “The boom comes with a repricing of AI, a DeepSeek moment, or seeing rates rise.”
Bonds remained steady on Thursday even as US GDP came in above expectations at 2.1% and PCE inflation rose to 4.15%, its highest level since April 2023. Long-term Treasury bond ETF TLT rose just three basis points at the close.
According to Kochuba’s analysis, market makers will likely buy the S&P when the index starts to fall below 7,200 and sell the index when it rises above 7,400.
