Wall Street's 'fear gauge' is soaring again, as investors spooked by Thursday's market decline rushed to load up on options protection, but analysts said the intensity of the move in volatility does not necessarily point to a market crash.
Prior to Thursday’s market drop investors were lapping up bullish call options in a bet that the market would continue to post new highs, said Rick Rieder, who runs BlackRock’s $23.2 billion Global Allocation Fund.
“The VIX is going to continue to trend higher for the next two months, regardless of what the equity markets do,” Frederick said.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Wall Street kicks off a strong September start—Three experts on what's nextStocks started September off with promising numbers after a good August run. Here's three experts on how markets could perform for the rest of the month.
Read more »
Wall Street has biggest gain since July, sets more recordsThe Dow Jones Industrial Average surged more than 450 points Wednesday as the stock market notched its best day in nearly two months. The S&P 500 rose 1.5%, it's best day since July 6. The...
Read more »
Wall Street has biggest gain since July, sets more recordsThe Dow Jones industrial average surged more than 450 points Wednesday as the stock market notched its best day in nearly two months.
Read more »
Wall Street closes higher with defensive bets out frontThe S&P 500 closed higher on Wednesday for the ninth time in the past 10 sessions, with defensive and value stocks taking their turns to lead the gains after data showed U.S. private payrolls expanded last month, but at a much slower pace than expected.
Read more »
Wall Street plunges as economic data indicates slowing economic recovery, tech stocks falterHeavyweights such as Apple, Amazon, Facebook, and Microsoft all saw steep losses after high-flying stock valuations lost momentum.
Read more »
Why is Wall Street expanding in China?BlackRock is setting up a Chinese fund business. JPMorgan Chase may spend $1bn to buy control of its Chinese money-management venture
Read more »