“The fear index” of Wall Street – the volatility index of the stock market CBOE VIX – rose on Thursday to a maximum since November last year amid growing geopolitical tensions.
The indicator surged by 44% in the last session, to the level of 16.04 points.
The US stock indices on Thursday fell at a fast pace, because of fears about the escalating situation on the Korean peninsula. In response to threats from the authorities of the DPRK to deliver a warning blow to the territory near the US base in Guam, US President Donald Trump promised to answer “with such fire and fury that the world has not seen yet.” On Friday, he said that “perhaps the threat of “fire and fury” was not strong enough.
Interesting enough, the jump in the CBOE VIX index was one of the most significant in history. This is an example of how dangerous trading can be in short-term volatility.
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