The Cboe Volatility Index VIX, +15.04%, better known as the Vix or Wall Street’s “fear gauge,” surged 20% on Friday to touch its highest level in more than a week, leaving it just shy of levels not seen since late May, according to FactSet data. The index touched an intraday high of 20.78, just shy of the Oct. 4 intraday high of 20.88. The move put the index briefly above its long-term average of 19.6.
The index reached its current 52-week high of 33.87 on Oct. 13 as stocks sold off following the release of a closely-watched inflation report, before the market staged a notable intraday rebound. Market strategists blamed geopolitical tensions tied to Israel’s escalating conflict with Hamas, as well as a U.S. plan to impose more sanctions on Russian oil sales, for rattling stocks as crude-oil prices jumped. The S&P 500 SPX, -0.58% traded as low as 4,311.97, down 1.1%, according to FactSet.