The Market's Fear Gauge Is Rising
Stock market volatility is spiking.
The Cboe Volatility Index, the market’s “fear gauge,” is up 10% to just over 22. Its long-term average is below 15. This comes as the major U.S. indexes are firmly lower.
The spike in the volatility index means the market is uncertain about what companies are worth, that there’s a wide range of expected outcomes for earnings and interest rates.