A key measure of volatility in the US stock market declined on Monday, reversing its rise on Friday amid escalating geopolitical tensions in the Middle East.
The VIX index, known as Wall Street's "fear gauge," fell 4.75% to 19.83 points at 10:46 a.m. Mecca time, after touching 19.71 points (-5.35%).
Ed Mills, a policy analyst at Raymond James, said in a note to clients that while the strikes represent the largest attack on Iran since the 1980s, the extent of the confrontation depends on the extent and impact of US or Russian intervention in the coming days and weeks, according to CNBC.
A Chicago Board of Trade (CBOE) Volatility Index (VIX) reading below 20 indicates a relatively stable environment in the stock market, while a reading above that level indicates increased volatility.
For the first time since May 26, the index finished above 20 on Friday after falling following Trump's announcement that the introduction of 50% tariffs on the European Union would be postponed until July 9.
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