Fear Index on Fire

VIX Surges to Intraday Record of 89.53 as Global Stocks Tumble

Oct. 24 (Bloomberg) — The benchmark index for U.S. stock options soared to the highest intraday level in its 18-year history as stocks tumbled around the world on concern that the global economy is in recession.

The VIX, as the Chicago Board Options Exchange Volatility Index is known, jumped 16 percent to 78.36 at 10:25 a.m. in New York after earlier rising as high as 89.53. The index measures the cost of using options as insurance against declines in the Standard & Poor’s 500 Index, which slid 5.6 percent.

“This is worse than we’ve ever seen,” said Diane Garnick, who helps oversee $500 billion as an investment strategist at Invesco Ltd. in New York. “It’s not only telling us that people are scared, but also that people don’t trust the market. My fear is people will leave the equity market and not rejoin it in the medium term.”

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One Response

  1. […] US stock market has seen some of its biggest daily gains and losses in history. The Fear Index has doubled its all-time high. World markets are down $16 trillion since Sept 1. Iceland, Hungary […]

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