Stock-market volatility spikes, but experts caution against buying signals

The Cboe Volatility Index (VIX), a measure of expected U.S. stock-market volatility, reached its highest level since March, but Wall Street technicians caution against viewing it as a buy signal. Despite the VIX breaking out, breadth issues in the market and weak underlying stock performance suggest caution. The VIX is not a leading indicator and tends to spike when the S&P 500 declines quickly and sharply. While the VIX remains relatively subdued compared to its 2022 average, concerns over the Israel-Hamas war and potential disruptions to energy supplies are contributing to market jitters. Treasuries have not attracted strong haven bids despite heightened geopolitical tensions.