Investor Fear Surges as U.S. Stock Market Faces Uncertainty
U.S. investors are experiencing "extreme fear" in the stock market, as indicated by CNN's Fear and Greed index, which reached its highest level since March. The index incorporates various factors, including the Cboe Volatility Index (VIX), which traded at its highest level since May. Other inputs, such as the number of stocks trading at 52-week highs versus lows and the put-to-call ratio, also suggest heightened fear. Despite this, junk-bond spreads have remained stable. U.S. stocks have been fluctuating, with the S&P 500 struggling to avoid its fifth red day in eight, influenced by rising Treasury yields and a strengthening dollar.