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Fortune

Will Daniel

The global market meltdown just sent Wall Street’s ‘fear gauge’ to a 4-year high

United States SEI US Federal Reserve Economy Fortune

(Credit: Michael Nagle—Bloomberg/Getty Images)

Wall Street’s infamous "fear gauge" surged on Monday, hitting its highest level since 2020 as stocks around the world tumbled.

The CBOE Volatility Index, or VIX, measures the implied volatility of the S&P 500 over the next 30 days based on market pricing for options. A higher value on this ‘fear gauge’ signals more expected volatility (think rapid stock price changes) and overall uncertainty ahead.

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