By Caitlin McCabe

Wall Street's "fear gauge" is headed for its highest close in more than four years, reflecting escalating unease about the market fallout from President Trump's tariff blitz.

-- The Cboe Volatility Index, or VIX, jumped to as high as 45.56 before pulling back somewhat.

-- It recently stood at around 40.

-- If it ends the day around here, that would mark the highest close since October 2020, when markets were anxious about a resurgence in Covid-19 cases and that year's election.

The VIX is based on options prices tied to the S&P 500 and measures expected volatility. Over the long term it has averaged just under 20. Higher levels generally indicate elevated uncertainty.

The last time the VIX really surged was in August, when the rapid unwinding of the yen carry trade jolted markets.

Then, anxiety in markets spiked but abated quickly. This time, the nervousness seems more enduring: The VIX is on pace for its largest weekly spike since the Covid-induced stock selloff of February 2020.

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(END) Dow Jones Newswires

April 04, 2025 08:44 ET (12:44 GMT)

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