VIX Soars by 28%: Is a Collapse in U.S. Stocks Imminent?

TradingKey - Today, the VIX index surged over 28%, signaling a potential sharp drop in U.S. stocks. 

On Monday, March 31, the VIX not only continued its upward trend but also accelerated significantly. As of the latest update, it had risen over 28%, peaking at 24.14, the highest in the past two weeks. 

VIX Panic Index Trend Chart, Source: Google.

The VIX stands for the Chicago Board Options Exchange Volatility Index. It measures the expected annualized volatility of the S&P 500 over the next 30 days. In simple terms, there is a significant inverse relationship between the VIX and the stock market. When the VIX rises, it suggests that investors are bearish on the market, often leading to stock declines. 

Recently, factors like escalating tariffs, threats against Iran, and geopolitical tensions have fueled the rise in the VIX. Over the last four trading days, the VIX has climbed 41%, indicating a potential for a larger market downturn ahead.