Tuesday June 3, 07:23 PM
VIX turns higher, makes 6th try at closing above 20 in the last month
NEW YORK (Thomson Financial) - The CBOE Volatility Index for the S&P 500 (VIX) erased earlier losses to rally above the 20 level, reflecting the sharp decline in the broader equity market.
The VIX was last up 3.4% at 20.51, after being down as much as 4.7% in intraday trading. This marks the sixth time the VIX has traded above the 20 mark since the beginning of May, but the last time it closed above that level was April 30.
On Monday, the VIX had traded as high as 20.45 in afternoon trading, but fell below the 20 mark for good in the last 15 minutes of trading and to close at 19.83.
The VIX is known as the fear gauge of the market, given its tendency to rise when stocks fall, and fall when stocks rise.
The S&P 500 was last down 10 points at 1,376, after seeing earlier gains of as much as 7.45 points.
A sudden sharp sell-off in General Motors (NYSE: GM - news) after the automaker reported disappointing May sales and a slide in Lehman Bros. amid concerns over liquidity needs helped trigger the midday slide in stocks.
Tomi Kilgore
tk1
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