VIX (Volatility Index)

The VIX, or Volatility Index, is a measure of market expectations for future volatility in the stock market, particularly the S&P 500 index. Often referred to as the "fear gauge," it reflects how much investors expect stock prices to fluctuate over the next 30 days. When the VIX is high, it suggests greater uncertainty and potential price swings, indicating investors are worried. Conversely, a low VIX suggests a calmer market outlook. It is commonly used by traders and investors to gauge market sentiment and as a tool for hedging against uncertainties.