NEW YORK (Reuters) – Investors are betting on stocks to remain volatile well into the year, suggesting that many expect the long-term economic and public health impact of the pandemic caused by the novel coronavirus to continue roiling markets despite a recent rally.
FILE PHOTO: The final numbers of the day are displayed above the floor of the New York Stock Exchange. March 20, 2020. REUTERS/Lucas Jackson/File Photo
The Cboe Volatility Index, known as Wall Street’s fear gauge, recently traded at 43.36 on Wednesday from a record closing high of 82.69 on Mar. 16.
Prices for near-term VIX futures, which reflect expectations of volatility in coming months, have dropped as well in the past two weeks. Front-month VIX futures, which expire on Apr. 15, were last trading at 42.15 from 45.875 on Mar. 26.
Yet longer-dated VIX futures have risen since late March. VIX futures expiring in September, for instance, have risen to 30.85 on Wednesday from 28.65 on Mar. 26.