Fear Index

Markets are getting more jittery as geopolitical events and rhetoric are increasingly expected to impact economies. For instance, tariffs are driving up inflation expectations, which could negatively impact consumer spending. Additionally, markets are pricing in greater uncertainty around artificial intelligence (AI) spending after several years of high growth and the recent announcements around Chinese AI model DeepSeek. Volatility in the US stock market is often measured using the VIX, also known as the “Fear Index”. The index increased in recent weeks but remains at a relatively low level compared to recent history. Meanwhile, in Europe, volatility has also increased, but markets have trended up, unlike the US so far this year.

Source: Chicago Board Options Exchange (CBOE), March 2025.