Wall Street’s primary measure of investor anxiety, the Cboe Volatility Index (VIX), hit 19.48 on Thursday – its highest since April – before closing at 18.59.
The spike coincided with a significant decline in US stocks as the S&P 500 shed nearly 1.4 percent and the Nasdaq Composite 2.3 percent, nearing a 10 percent decline from last month’s record high.
As many as 1.5 million VIX options were traded on Thursday, nearly double the average daily volume, indicating heightened market apprehension, Reuters reported.
Additionally, the VVIX index, which measures expected volatility in the VIX itself, rose 16.93 points to 111.18, indicating expectations of significant near-term market swings.
The fear gauge, which has averaged 13.96 this year, has been rising as investors wary about corporate earnings and economic growth.
The S&P 500 is down about 4 percent from its July 16 peak.
Follow us on
