VIX Futures Flash Market Fear With Jump to Highest Since 2009

(Bloomberg) —

A measure of fear in U.S. stocks surged to the highest since 2009, surpassing last week’s peak as an emergency move by the Federal Reserve to ease policy did little to calm markets on edge over the spreading coronavirus.

The generic front-month futures contract for the jumped as high as 57.9 on Monday. The gauge measures traders’ expectations for where the VIX will trade a month from now.

Wall Street’s fear barometer, which tracks the 30-day implied volatility of the based on out-of-the-money options prices, wasn’t quoted as of 9:15 a.m. London time. A notice on Cboe’s website said the opening for S&P 500 and products has been delayed.

Monday’s surge sent VIX futures beyond their highs of last week, which included several limit-down pauses to U.S. stocks and the S&P 500’s biggest tumble since the crash on Black Monday in 1987.

Following Friday’s huge rebound in stocks, futures on the S&P 500 have hit trading limits with a decline of almost 5%. Benchmark Treasury yields retreated more than 30 basis points at one point, as coordinated action by central banks appeared to do little to stem the bleeding.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.