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

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.

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By TTTranslated and adapted by Sweden Herald
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