Wall Street's 'fear gauge' collapses as stocks soar
The post-election “volatility crush” that Wall Street has been hoping for is in full effect.
As U.S. stock futures soared following former President Donald Trump’s electoral victory, the Cboe Volatility Index — better known as the VIX or Wall Street’s “fear gauge” — sank more than 22% in premarket trade. The index recently stood at 15.85, compared with north of 22 a day earlier.
The drop was the biggest for the index since Aug. 6, the day after the unwind of the yen carry trade spurred a punishing global stock-market selloff.