Cboe Volatility Index Peaks at 60, Signaling Increased Market Uncertainty
Wall Street's Cboe Volatility Index (VIX) is experiencing significant fluctuations, currently around 48 after reaching 60 overnight. This index measures expected volatility in the S&P 500 over the next month.
Key points include:
- The VIX's 30-day moving average rose to 21.4, above the long-term average of 19.5.
- Current volatility levels are nearly four standard deviations above the historical average, similar to conditions seen in 2020 and 2008.
- The market sentiment differs from previous crises; today's situation is not due to a financial system collapse or a global pandemic.
- Market movements could be influenced by social media or government statements, highlighting the current volatility's sensitivity.