The Stock Market Is Hitting New Highs. Things Aren’t as Calm as They Seem.
While all three major U.S. indexes were in the green, the main gauge of market volatility—the Cboe Volatility index, or VIX—rose almost 3% during the session. The index, also known as Wall Street’s “fear gauge,” uses the options market to measure expected swings in stock prices. While stock prices are high today, the Vix’s recent rise indicates that traders see a range of possible stock market prices in the next few months, including the possibility of steeper falls.