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Volatility Index Spikes by Largest-Ever Amount
The 116 percent increase is nearly double the next biggest one-day move for the gauge
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Investors used to the relative market calm of the past three years got an abrupt wake-up call Monday after the Cboe Volatility Index closed at its highest level since August 2015. The VIX, which tracks expected volatility through options pricing, more than doubled to 37.3 on Monday as the S&P 500 Index dropped by 4.1 percent and the Dow Jones Industrial Average sank by over 1,100 points. The VIX surged by 116 percent, the largest one-day move on record for the gauge.