Stocks and bonds swung sharply during the latest three-month period

If volatility drivers (inflation data, Fed policy signals, earnings surprises) stabilize with clear directional outcomes, markets would likely consolidate around new price levels with reduced intraday swings and tighter bid-ask spreads.

Continued elevated volatility without resolution of underlying macro uncertainty would plausibly keep portfolio rebalancing flows elevated and encourage tactical positioning over strategic allocation, sustaining elevated trading volumes and option premiums.

A fresh shock—geopolitical event, unexpected inflation print, or financial stress signal—would likely trigger sharp repricing across both equities and bonds, potentially forcing margin calls and forced liquidations in leveraged positions.