VIX (Volatility Index)

The VIX is a number that measures how much investors expect the stock market to bounce around in the near future—basically, a fear gauge. It ranges from 0 to 100, where higher numbers mean investors are nervous and expect wild price swings, while lower numbers suggest calm markets. You'll see the VIX mentioned in financial news whenever markets get shaky, because it helps explain whether people are panicking or relaxed. When big economic news hits or stocks drop suddenly, the VIX typically spikes. For example, if the VIX jumps from 15 to 35 overnight, it signals that traders expect the market to get choppy in the coming weeks. Many investors watch it as a reality check on market mood.