Cboe index data show U.S. equities extend August gains as mega-cap tech regains lead

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US equities August gains

Highlights

The S&P 500 gains 2.6% to 7,686 in August, while the Cboe Magnificent 10 Index surges 7.5%, regaining leadership over broader U.S. equities.
VIX Index falls from 15.99 to 14.92, near its lowest level of the year, and the One-Month Implied Correlation Index jumps over 60% to 10.06, signaling increased stock co-movement.
Cboe Bitcoin ETF Index rebounds 25.4% in August, accompanied by a 3.2% rise in the Cboe Bitcoin ETF Volatility Index, highlighting strong gains amid increased volatility.

August market moves across key indexes

As reported by Cboe, citing Cboe Global Markets, the S&P 500 rises 2.6% in August to 7,686, while the Cboe Magnificent 10 Index climbs 7.5%, outperforming both the broader market and the Russell 2000, which adds nearly 1% to 2,956. The Cboe S&P 500 Equal Weight Index also advances 1.9%, indicating broad market participation even as leadership shifts back toward the largest technology stocks.

Volatility eases further during the month, with the VIX Index falling from 15.99 to 14.92 and ending near its lowest level of the year after trading in a 14.25 to 16.50 range. The Three-Month Volatility Index declines 7.8% to 17.53, while implied correlation rises sharply, with the One-Month Implied Correlation Index jumping more than 60% to 10.06 and the Six-Month Implied Correlation Index increasing 8.8% to 12.60.

The Cboe S&P 500 Dispersion Index falls nearly 20%, pointing to less stock-specific differentiation, and the VIX of VIX Index eases 5.8%. Together, those moves suggest stocks trade more in tandem even as headline volatility remains contained.

Strategy performance and broader asset impact

Options-income strategies record broad gains as higher underlying prices and relatively subdued volatility support returns. The Cboe Validus S&P 500 Dynamic Call BuyWrite Index leads with a 2.8% gain, followed by the Cboe S&P 500 One-Month Covered Call Index at 2.2% and the Cboe FTSE Russell IWM 2% OTM BuyWrite Index at 1.8%.

Put-writing strategies also move higher, with the Cboe Russell 2000 PutWrite Index up 1.9% and the Cboe S&P 500 PutWrite Index gaining 1.7%. Russell-linked call-writing trails somewhat, as the Cboe Russell 2000 Daily Covered Call Index rises 0.9%.

Crypto-linked benchmarks rebound sharply after July's weaker performance. The Cboe Bitcoin ETF Index jumps 25.4%, while the Cboe Bitcoin ETF Volatility Index edges up 3.2%, indicating that the rally comes with elevated two-way volatility rather than a steady, low-volatility climb.

Our earlier article on negative-beta stocks as equity hedges explained how some S&P 500 names that tend to move opposite the broader index can help cushion portfolios during renewed volatility. It highlighted sector-heavy representation in areas like financials, utilities, consumer staples, and energy, and noted examples such as Occidental Petroleum and Chevron as potential defensive picks when rates, geopolitics, and other shocks pressure markets.

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