After a strong first half where both the S&P 500 Index ($SPX) and the Nasdaq Composite Index ($NASX) delivered double-digit returns with quite low volatility, fear is back on Wall Street - and quite literally so. The Cboe Volatility Index ($VIX), which is known as the market's “fear gauge,” and measures expected SPX volatility over the next 30 days, rose to its highest level since March 2020 on Monday.
The S&P 500 had its worst day since 2022, and the Nasdaq Composite’s YTD gains are now down to just about 9%, as the tech rally has come to a screeching halt. While aggressive and growth investors will see the crash as a buying opportunity, and might have their shopping lists ready, such volatility is bound to spook more conservative investors.
