The Market’s Fear Gauge Is Rising Again

Since January, the CBOE Volatility Index (VIX) has risen more than 80%, reflecting a surge in market volatility amid growing geopolitical tensions, including the war in Iran. The VIX is derived from options activity on the S&P 500 Index and is often referred to as the market’s fear index. The recent rise suggests investors are becoming increasingly uncertain about the economic outlook. Even so, the index remains well below the spike above 50 seen last March during tariffs announcement. With the VIX currently above the 20 level, markets appear to be entering a more cautious phase, though not yet one of extreme stress.