Stock Market Volatility

The extreme volatility event in the stock market may not have been as it seemed, with some experts questioning the accuracy of the VIX fear gauge. Technical factors such as lack of liquidity and misfired volatility bets could have contributed to the spike. Market sentiment may be better reflected by VIX futures rather than the VIX itself.

Stock Market Volatility

The VIX, a key measure of stock market volatility, has surged to levels not seen since the pandemic and the 2008 financial crisis. It reached 54 on Monday, calming down to 33.96 later. The VIX is based on S&P 500 options prices and is known as the 'fear index.'