Wall Street's fear gauge surges the most since April. Why traders think it should be even higher
From its intraday low to high Thursday, VIX moved more than 11 points, the biggest one-day move since April 9.
A recent "AI bloodbath" has shaken US stock markets, with the S&P 500 falling by 4%. This sharp decline occurred just two days after midterm elections, which saw the Democrats unexpectedly perform well. Investors are concerned that the Democratic party may curb the development of Artificial Intelligence (AI) infrastructure, as infrastructure expansion was a key election promise.
The Nasdaq, a leading technology exchange, experienced a more than 5% drop, exceeding ten percent below its all-time high. The Dow Jones, which had risen 1500 points the previous day, also saw all its gains erased and closed 3.2% lower. The S&P 500 suffered its steepest single-day decline since April 2025, when Donald Trump announced US tariffs worldwide. The US Volatility Index (VIX), known as the "market's fear gauge," surged by over 60%.
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- Stocks slide on Wall Street as investors worry about data centre backlash following US midterms dawn.com
- Nasdaq heading for worst day in 18 months as Wall Street sustains widespread losses theguardian.com
- Wall Street: "AI bloodbath" on US stock exchanges - S&P 500 plunges by four percent handelsblatt.com
- Bitcoin erases post-election gains as Wall Street selloff triggers over $1 billion in crypto liquidations theblock.co
- Wall Street's tech selloff continues after the midterms' Blue wave seekingalpha.com
