The VIX, often referred to as the "fear gauge" of the stock market, climbed on Tuesday to 19.36, up from the previous close of 18.37, reflecting heightened market volatility.
During intraday trading, the index fluctuated between a high of 19.38 and a low of 18.76, signaling uncertainty among investors.
Over the past year, the VIX has ranged from a low of 10.62 to a high of 65.73, with the current 50-day moving average sitting at 17.96. This uptick in volatility suggests growing market concern, as the VIX typically increases when stock prices fall, reflecting fear of potential price swings.
Why it's crucial
Tracking VIX movements is crucial for understanding market sentiment. The index tends to remain low during bullish periods, when stocks rise steadily, and climbs during bearish phases, when investors brace for downturns. The recent rise could indicate a shift in market mood as traders navigate growing uncertainty, potentially driven by macroeconomic concerns, earnings reports, or geopolitical events.
