Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Fear index eases off 14-month high

By Chavon Sutton, staff reporter

NEW YORK (CNNMoney.com) -- Wall Street's key volatility measure fell Tuesday as stocks, battered by persistent worries about the health of European banks and sustainability of the global economic recovery, pared losses.

The CBOE Volatility (VIX) index, or the VIX, fell 7.5% to 35.61, after rising as high as 43.74 earlier in the trading session. The index has eased off the 14-month high set last Thursday.


Investors remained skittish as stocks plunged around the globe earlier Tuesday. The Dow Jones industrial average lost (INDU) nearly 200 points, continuing the downward tear it has been on for most of May, before cutting some losses in afternoon trading.

The VIX jumped 30% on May 20 to settle at 45.79, the highest level since March 20, 2009, following Germany's ban on so-called naked short selling on some financial institutions and European Union government bonds. A VIX reading higher than 30 is considered a sign of increased worry among investors.

The move was geared toward stabilizing the euro and the region, but instead sent stocks plunging, as many investors saw it as a sign that European banks and sovereigns are on shaky footing.

Although down on Tuesday, the VIX is still up 129% since April 12, when it was trading at 15.58 -- its lowest level in nearly three years.

Year-to-date the fear gauge is up 63.75%, and up 20.4% over the past five days. Global stocks have struggled for weeks amid a spate of unsettling news from the euro zone that has sent investors fleeing risky assets such as stocks, commodities, and the euro.  To top of page

Overnight Avg Rate Latest Change Last Week
30 yr fixed3.44%3.46%
15 yr fixed2.72%2.73%
5/1 ARM2.98%2.95%
30 yr refi3.49%3.49%
15 yr refi2.72%2.75%
Rate data provided
by Bankrate.com
View rates in your area
Find personalized rates:
Index Last Change % Change
Dow 18,223.03 77.32 0.43%
Nasdaq 5,309.83 52.43 1.00%
S&P 500 2,151.33 10.17 0.47%
Treasuries 1.76 0.02 1.32%
Data as of 10:07pm ET
Company Price Change % Change
AT&T Inc 36.86 -0.63 -1.68%
Bank of America Corp... 16.77 0.10 0.60%
Chesapeake Energy Co... 6.36 -0.32 -4.79%
Microsoft Corp 61.00 1.34 2.25%
Time Warner Inc 86.74 -2.74 -3.06%
Data as of 4:15pm ET


One of the clear messages from Consumer Reports dependability survey was that cars that have recently been totally redesigned tend be less dependable. More

Stocks are widely expected to drop close to 10% if Trump wins the presidency. But even if Clinton wins, stocks could still sell-off the day after the election. More

Microsoft is raising prices in the U.K. by whopping 22%, in response to the collapsing value of the pound. More

The University of Illinois partnered with Coursera to launch one of the most affordable online MBA programs yet. More