By Krystal Hur

A touch of volatility is creeping back into the stock market.

All three major equity indexes fell more than 1.5% on Friday, following lackluster economic data. That also boosted expectations for greater swings ahead in the stock market.

The Cboe Volatility Index, or VIX, jumped to end the week and rose further Monday, to hover around its highest level this year. The VIX, dubbed Wall Street's fear gauge, uses options prices tied to the S&P 500 to measure expected volatility in the index.

Meanwhile, a record volume of more than 4.7 million options contracts tied to the S&P 500 traded on Friday, according to Cboe Global Markets. About 55% of that volume was in so-called 0dte contracts, or zero-day-to-expiry options that expire by the end of the day.

In another bearish sign, an options measure called the skew steepened, indicating that demand for puts is rising. Puts offer the right to sell a stock at a certain price by a set date.

At less than 20, however, the VIX remains subdued compared to periods of greater market stress. Last August, for example, it spiked above 60 during intraday trading.

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(END) Dow Jones Newswires

February 24, 2025 11:04 ET (16:04 GMT)

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