Investor ‘Fear’ Is Dropping the Most Since April 2025
The Cboe Volatility Index (VIX), often called Wall Street’s “fear gauge,” is down about 20% this afternoon to around 16.75. If that holds into the close, it would be the biggest one-day percentage drop since April 2025. The roughly 4-point decline is also the largest since this past April.
The VIX tracks how much volatility options traders expect in the S&P 500 over the next 30 days. A drop this sharp usually means investors are taking hedges off after a known risk has passed, not that the market has become safe. It puts the VIX back below its long-run average of about 19, which leaves room for it to rise if stocks lose ground again.
