The VIX index is crawling back as American stock futures pull back. The index is trading at $30.20, which is about 3.3% above the lowest level on Tuesday. It has also rallied by more than 26.40% above last week’s low of $23.76. The fear and greed index has crashed to the extreme fear level of 20.
Dow Jones and S&P 500 futures retreat
The CBOE VIX index is a relatively important tool in the financial market. It uses options data to check the overall volatility in the S&P 500 index. A higher VIX figure is usually a sign that there is heightened volatility in the market and vice versa.
The VIX declined sharply on Tuesday as American equities rallied. The Dow Jones added over 640 points while the S&P 500 rose by over 90 points. The tech-heavy Nasdaq 100 index rose by more than 200 points as investors bought the dip.
Now, the situation has reversed and futures tied to the three have dropped by more than 0.50%. At the same time, bond yields have also retreated as bond prices rise. The yield of the 10-year government bond is trading at 3.26% while the 30-year is at 3.32%.