Solid volumes set to underpin US exchange results, bubble chatter in focus

By Prakhar Srivastava (Reuters) -Major U.S. exchange operators are set to report a solid third quarter as robust trading in equities and options lifts volumes, a surge that has prompted some analysts to question whether parts of the market are in a bubble. Worries about overheating in AI-linked stocks kept traders rotating in and out of stocks as they weighed potential winners and losers. Hedging and sector rotations are driving surges in trading volumes, analysts said, as investors shift positions to manage risk and chase market trends. "The market has shown a high tolerance for chaos with a strong ethos of buying the dip," said Michael Ashley Schulman, partner and CIO at Running Point Capital Advisors. "Underneath the surface, earnings growth is grinding forward, consumer spending is res