VIX: S&P 500 INDEX VOLATILITY RECEDES FROM EXTREME HIGHS AS THE STOCK MARKET STABILIZES, BUT CROSS-ASSET VOLATILITY BENCHMARKS SUGGEST MORE PAIN AHEAD
- VIX ‘fear-gauge’ retreats from its highest studying since 2008 in the course of the international monetary disaster because the coronavirus outbreak paralyzes the worldwide economic system
- The S&P 500 Index selloff begins to stabilize as US shares look to a wave of stimulus from the FOMC and Trump administration
- Cross-asset volatility measures nonetheless dangle round excessive highs and underscores the diploma of uncertainty, or threat, that continues to loom over market sentiment
The inventory market selloff since mid-February has pushed the S&P 500 Index 30% decrease from its all-time report excessive just under the three,400 degree. Regardless of aggressive motion from the Federal Reserve and Trump administration to stimulate the economic system, that are aimed toward offsetting the financial value of the coronavirus pandemic, bearish sentiment continues to steer shares decrease.
In reality, the inventory market rout recorded over the past 5 buying and selling periods brought about the S&P 500 Index to drop by 15% for its greatest weekly decline since October 2008 amid the global financial crisis. As international central banks and governments announce efforts to counter the novel coronavirus outbreak, nonetheless, the slide in shares may begin to decelerate.