CBOE Volatility Index (VIX)

The CBOE Volatility Index (VIX) measures market expectations of near-term stock market volatility, derived from options prices on the S&P 500. Often called the "fear gauge," it reflects investor sentiment about potential market swings in the coming months. A high VIX indicates increased uncertainty and potential for larger price swings, while a low VIX suggests calm and stability. It doesn’t predict market direction, but provides insight into overall market anxiety and risk perception, serving as a useful tool for investors to gauge market sentiment and manage risk.