Wall Street’s fear gauge, the Cboe Volatility Index (VIX), soared to its highest level in recent years, surpassing 40 for the first time. This rare occurrence is seen as a sign of extreme market anxiety and calls for an immediate policy response. According to Nicholas Colas, co-founder of DataTrek Research, this level is historically associated with “a crisis that demands attention.” The surge on Friday was deemed a “true panic day” by Colas, who noted the unprecedented nature of the event in a Monday email.
Source: https://www.marketwatch.com/story/wall-streets-fear-gauge-soars-to-a-rare-crisis-level-what-that-means-for-stocks-56605852