All articles tagged with #fear gauge
The Cboe Volatility Index (VIX), also known as the "fear gauge," has reached its lowest level since before the pandemic, indicating that investors have become complacent about potential risks. While this suggests optimism in the stock market, some analysts are concerned that this complacency could leave markets vulnerable to negative shocks in the near future.
Wall Street's fear gauge, the Vix, reached a six-month high as stock options tied to $2.5 trillion in market value are set to expire, potentially leading to increased volatility in the stock market. Of the $2.5 trillion, $1.7 trillion worth are linked to the S&P 500. Large option expiration days often result in heightened trading activity and intraday volatility. The rising Vix has made this expiration particularly significant, with some investors closely monitoring the event. While a rising Vix may indicate more market pain ahead, it also benefits option-selling strategies. Additionally, the popularity of shorting volatility and selling covered calls has increased this year. Rising Treasury yields are also causing concern among traders, with U.S. stocks selling off as the 10-year Treasury yield approached 5%.
Wall Street has a new "fear gauge" that measures market volatility and investor sentiment. As the second week of corporate earnings approaches, Dow futures have dropped, indicating potential market turbulence. Investors will be closely watching earnings reports to gauge the health of the economy and the stock market.