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[$$] Investor Fears Drive Up Hedging Costs

Investors are bracing for greater turmoil across markets, increasing hedges on their stock positions after months of calm. Meanwhile, the Dow Jones Industrial Average and S&P 500 on Wednesday recorded their biggest one-day falls since February and continued to fall on Thursday. “It really seems to be the anticipation of looming danger through rising rates,” said Stefan Wintner, vice president of volatility strategies at Florida-based Dunn Capital Management.