S&P 500 rally fueled by options trading and earnings surge as gamma squeeze drives index past 6,500
The S&P 500 index surpassed 6,500, driven by a significant surge in options trading and strong earnings reports. A gamma squeeze, caused by a large volume of call options, forced market makers to buy stocks, further pushing prices up. While this rally has been impressive, the underlying mechanics could lead to a rapid reversal if the options market shifts.
- ▪The S&P 500 index reached over 6,500 on April 1, gaining approximately 100 points in one day.
- ▪Options trading volume hit $2.6 trillion, predominantly in call options, contributing to the market rally.
- ▪A gamma squeeze occurs when rising stock prices compel dealers to buy more shares to hedge their options exposure.
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<img src="https://static.cryptobriefing.com/wp-content/uploads/2026/05/17094119/nvidia-momentum-highlights-speculative-nature-of-rally-1-800x420.png" alt="S&P 500 rally fueled by options trading and earnings surge as gamma squeeze drives index past 6,500" class="w-full aspect-[19/10] object-cover" /> S&P 500 rally fueled by options trading and earnings surge as gamma squeeze drives index past 6,500 A $2.6 trillion wave of call options is pushing the market higher, but the mechanics propping up this rally could just as easily unwind it. Share Add us on Google by Editorial Team May. 17, 2026 The S&P 500 blew past 6,500 on April 1, tacking on roughly 100 points in a single session. The engine behind the move wasn’t just strong earnings or renewed investor confidence.
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