Vix Surge Signals Growing Recession Fears in US Markets

Vix, which is usually referred to as Wall Street's fear index, temporarily rose to over 60 on Monday morning. It is a surge upwards of 130 percent compared to the previous day.

» Published: April 07 2025 at 12:59

Vix Surge Signals Growing Recession Fears in US Markets
Photo: Seth Wenig AP/TT

It was last at that level according to Financial Times (FT) in August when the Japanese economy was in crisis.

According to the major bank UBS, the high Vix index indicates that a recession is on its way in the USA.

Kjerstin Brathen, chief economist at the Norwegian major bank DNB, is on the same track.

Now we see that many are acting based on a fear that the USA is entering a period with recession. That is what the market is pricing in. Now we are in a violent correction on the stock exchanges, she says to the news agency NTB.

Vix shows investors' expectations for the next 30 days. An index above 30 usually signals great instability, something that has only occurred a handful of times in recent years, according to FT.

Tags

TT News AgencyT
By TT News Agency - Translated and adapted by Sweden Herald under license from TT News Agency

More news

EU Proposes Tariffs on US
1 MIN READ

EU Proposes Tariffs on US Sausage and Diamonds

Swedish Investors Shift Focus to
2 MIN READ

Swedish Investors Shift Focus to European Funds During Market Turmoil

Stockholm Stock Exchange Faces One
5 MIN READ

Stockholm Stock Exchange Faces One of Its Bloodiest Declines in Years

Svantesson Reassures Swedish Savers During
2 MIN READ

Svantesson Reassures Swedish Savers During Market Turbulence

Swiss Chocolate Faces Double Blow
1 MIN READ

Swiss Chocolate Faces Double Blow from US Tariffs and Cocoa Costs

Trump Threatens 104 Percent Tariffs
1 MIN READ

Trump Threatens 104 Percent Tariffs on Chinese Imports

Starmer Urges Action on Trump's
1 MIN READ

Starmer Urges Action on Trump's Trade Tariffs at Jaguar Land Rover Event

White House Dismisses Reports of
2 MIN READ

White House Dismisses Reports of Trump Tariff Pause as Fake News

Swedish Finance Minister Warns of
1 MIN READ

Swedish Finance Minister Warns of Potential Stock Market Challenges

Wall Street Rebounds as S&P
1 MIN READ

Wall Street Rebounds as S&P 500 Surges 3 Percent

Stock Market Crash Dampens Swedish
2 MIN READ

Stock Market Crash Dampens Swedish Housing Price Forecasts

Genre image
1 MIN READ

New Bus Service Connects Copenhagen and Gothenburg Starting May 8

Sweden's Labor Market Strong Despite
2 MIN READ

Sweden's Labor Market Strong Despite Global Economic Challenges

EU Prepares to Vote on
3 MIN READ

EU Prepares to Vote on Retaliatory Tariffs Against US on Wednesday

When to Sell in a
2 MIN READ

When to Sell in a Tumbling Stock Market: Expert Advice

Swedish Economy Faces Potential Slowdown
2 MIN READ

Swedish Economy Faces Potential Slowdown Due to US Tariffs, Says Finance Minister

Crypto Market Gains Wiped Out
1 MIN READ

Crypto Market Gains Wiped Out as Tariffs Impact Bitcoin and Ether

Record Activity Causes Platform Disruptions
1 MIN READ

Record Activity Causes Platform Disruptions During Stock Market Plunge

Poland Proposes New European Defence
1 MIN READ

Poland Proposes New European Defence Fund to Boost Regional Security

Wall Street Leaders Criticize Trump's
3 MIN READ

Wall Street Leaders Criticize Trump's Tariff Strategy

Northvolt Subsidiary's Unused Equipment Heads
1 MIN READ

Northvolt Subsidiary's Unused Equipment Heads to Auction Block

Germany's Industrial Output Drops More
1 MIN READ

Germany's Industrial Output Drops More Than Expected in February

Swedbank Predicts Swedish Central Bank
1 MIN READ

Swedbank Predicts Swedish Central Bank to Cut Interest Rates Again

Swedish Central Bank Expected to
2 MIN READ

Swedish Central Bank Expected to Cut Rates Amid Customs Crisis

Stockholm Stock Exchange Sees Volatile
2 MIN READ

Stockholm Stock Exchange Sees Volatile Day Amid Tariff Confusion

Nordea Economist Seeks US Economic
2 MIN READ

Nordea Economist Seeks US Economic Slowdown to Curb Tariffs

EU Considers Tariffs on US
3 MIN READ

EU Considers Tariffs on US Goods: Alcohol, Tech, and More at Risk

National Debt Office Warned of
1 MIN READ

National Debt Office Warned of Northvolt's Risks Before Bankruptcy

Global Markets Tumble as Asian
2 MIN READ

Global Markets Tumble as Asian Stocks Dive After Tariff Clash

Trump on Market Turmoil: Tariffs
2 MIN READ

Trump on Market Turmoil: Tariffs Are the Necessary Medicine

Wall Street Braces for Sharp
1 MIN READ

Wall Street Braces for Sharp Decline After Tariff Announcement

Economist Warns US Tariffs Echo
2 MIN READ

Economist Warns US Tariffs Echo 1930s Trade War Risks

China Braces for Market Turmoil
2 MIN READ

China Braces for Market Turmoil as Stock Exchanges Reopen

Experts Predict Ongoing Stock Market
3 MIN READ

Experts Predict Ongoing Stock Market Volatility as Trade Tensions Rise

Maximize Your Tax Refund: Smart
3 MIN READ

Maximize Your Tax Refund: Smart Tips for Financial Gains

Zimbabwe Drops US Tariffs in
1 MIN READ

Zimbabwe Drops US Tariffs in Response to Trump's Trade Move

EU Tariffs on US Goods:
3 MIN READ

EU Tariffs on US Goods: Are They Really Unfair?

Over 50 Nations Seek Tariff
2 MIN READ

Over 50 Nations Seek Tariff Talks as US Markets React to New Policies

French PM Warns Trump's Tariffs
1 MIN READ

French PM Warns Trump's Tariffs Threaten France's Economy and Jobs

When to Sell: Expert Tips
2 MIN READ

When to Sell: Expert Tips for Navigating the Stock Market Slump