VIX

Topicupdated 2025-11-19 10:03
VIX

The VIX, officially known as the CBOE Volatility Index, is a real-time market index created by the Chicago Board Options Exchange. It represents the market's expectation of 30-day forward-looking volatility, derived from the price inputs of S&P 500 index options. Due to its nature, it is widely referred to as the stock market's "fear index" or "fear gauge."

This index is notable because it provides a measurable indicator of investor sentiment and risk. When the VIX is low, it signals investor complacency and market stability, while a high VIX reading indicates increased fear, uncertainty, and expected turbulence in the markets. As such, it is a critical tool for investors and traders to gauge market risk and hedge their portfolios.

Recently, the VIX has been a prominent topic in financial news due to a significant spike in its value. Numerous reports from mid-to-late November 2025 highlight that the so-called "fear gauge" surged, with some headlines noting increases of around 10%. This volatility was linked to concerns over stock valuations that rattled US markets, contributing to notable declines in major indices like the S&P 500 and Europe's CAC 40.

The recent activity has prompted discussions among analysts and investors about the sustainability of the market dip and potential strategies for navigating the increased volatility. The elevated level of the VIX underscores a shift in market sentiment from calm to caution, reflecting broader economic concerns currently influencing global financial markets.

Brief generated by an LLM (DeepSeek) from Wikipedia and recent news headlines.

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