Fear Gauge Still Signaling Low Volatility After Sharp Drop
Fear Gauge Still Signaling Low Volatility After Sharp Drop
The most widely-followed gauge of market fear and uncertainty was still signaling calm on Wednesday as investors weighed cooling inflation and President Donald Trump's trip to the Middle East.
The Cboe Volatility Index, which tracks S&P 500 options contracts and trades under the ticker VIX, crept up 1.7% to 18.5 in early trading. Any reading of below 20 is typically seen as a sign of relatively low volatility.
The Wall Street fear index has tumbled over the past month, with investors settling down after Trump's tariffs triggered a spell of panic. The VIX is now “solidly back in bull-market territory,” said Nicholas Colas, co-founder of DataTrek Research, in a note emailed Tuesday. That marked “a good step toward a more normal investment environment," he added.
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