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BlackRock Says $9 Trillion Cash Acceleration Poses Asset Risk, Multi-Event Week May Amplify Market Volatility
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BlockBeats News, June 16th: BlackRock's Chief Investment Officer of Global Fixed Income, Rick Rieder, stated that following the peace arrangement between the US and Iran, around $8 trillion to $9 trillion held in money market funds is rapidly flowing back into risk assets, a process he described as potentially having an "explosive" effect.

Driven by this capital inflow, US stocks and treasuries rose in tandem on Monday, while oil prices retreated on expectations of the reopening of the Strait of Hormuz. Rieder believes that current liquidity is shifting from low-risk instruments to a broader array of assets and anticipates that the new Federal Reserve Chair, Kevin Warsh, may focus more on balance sheet management and money supply control rather than solely relying on short-term rate tools.

Meanwhile, the derivatives market is gearing up for a flurry of events. Due to the June 19th Juneteenth holiday closure, this week's "triple witching day" has been moved up to Thursday, coinciding with the S&P 500 quarterly rebalancing, heightening volatility risks in the stock market.

Furthermore, SpaceX-related options are expected to begin trading on Tuesday. Market participants believe that driven by retail investor funds, these contracts could quickly heat up, potentially leading to a "gamma squeeze" triggered by concentrated call option buying.

SpotGamma founder Brent Kochuba warned that amid the continued rise in US stocks since April, market maker hedging pressures have been steadily building up. If Warsh delivers signals at his first press conference that surpass expectations, the market will have little resilience to absorb the impact.

The S&P 500 Index quarterly adjustments will also take effect after Thursday's close, with Marvell Technology (MRVL) and Flex (FLEX) being added to the index, while Pool (POOL) and Campbell's (CPB) will be removed.

출처:BlockBeats

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