Investors increased protective put purchases on the Russell 2000, marking the first significant hedge demand in six weeks after the index fell 1.6% on rate concerns. The rise in put volume reflects a growing need to guard against small-cap volatility as broader market sentiment splits.

Thirty-year Treasury yields climbed to levels not seen since 2007, fueling expectations of a Federal Reserve rate hike by year-end and lifting oil-driven inflation worries. This combination has put additional pressure on interest-rate sensitive stocks in the small- and mid-cap segments.

In contrast, S&P 500 put demand remained modest as investors bet on continued gains in large caps driven by artificial intelligence catalysts. Nvidia’s May 20 earnings release is viewed as a key trigger, with AI optimism underpinning expectations for further upside in technology leaders.