Cboe Volatility Index nears lowest close since Iran war began
Updated
Updated · MarketWatch · May 6
Cboe Volatility Index nears lowest close since Iran war began
10 articles · Updated · MarketWatch · May 6
The VIX fell 5.5% to 16.42, below its long-term average of 19.50, after topping 30 during peak anxiety over the US and Israel's war against Iran.
The options-based gauge tracks expected S&P 500 volatility and is widely seen as Wall Street's fear measure because it typically rises when stocks fall.
Its latest drop suggests investors have become markedly calmer about equity market prospects since the conflict erupted at the end of February.
Is the current drop in the VIX a sign of real market stability or just temporary calm before another geopolitical shock?
How might renewed conflict in the Strait of Hormuz impact oil prices and global inflation if negotiations fail?