Wall Street Still On Edge, Fear Gauge Shows

Stocks were rallying Wednesday after Commerce Secretary Howard Lutnick signaled the U.S. could be prepared to scale back its tariffs on Canada and Mexico, but the best-known measure of market uncertainty remained elevated.

The Cboe Volatility Index (VIX), a widely followed fear gauge that tracks S&P 500 options contracts, was flat at about 23.5 in early trading. Any level above 20 is typically seen as an indicator of heightened volatility, so the latest reading suggests investors don’t think the tariff drama is over just yet.