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Panic Button Is Nowhere in Sight as Memory of 7th S&P Rout Fades

  • Friday’s selloff was met with tepid ETF outflows, tame VIX
  • Morgan Stanley’s trading desk warns of quant, pension selling
Bloomberg business news
Markets 'Spooked' About Hard Landing: Zuma Wealth CIO

Worried? Yes. But investors have evinced few signs of panic amid a stock market drubbing that has wiped out $3 trillion, going by everything from fund flows to options trading.

One sign nerves are in check: as the S&P 500 dropped more than 3% Friday, the Cboe Volatility Index, a measure of options cost that’s also known as VIX, was stuck near 25, lower than in the six other instances this year when stocks sold off like this.