Traders Expect Biggest Fed-Day Move in S&P Since 2023, Citi Says (Bloomberg)

Options traders anticipate the largest S&P 500 movement on a Federal Reserve decision day since May 2023, with expectations set for a 0.95% swing. This heightened market sensitivity reflects concerns over prolonged high interest rates amidst mixed earnings and rising geopolitical tensions. Historically, actual market movements on Fed days have exceeded predictions since early 2022.