VIX Surges 35% as Global Markets Plunge on Banking Sector Fears
NEW YORK, March 31, 2025 — The CBOE Volatility Index, commonly known as the VIX, surged 35% in early trading today, reaching a session high of 48.3 points, amid a sharp global market selloff triggered by renewed banking sector instability. The spike, the largest single-day gain since March 2020, correlated with a 4.2% drop in the S&P 500, as investors rushed to hedge against potential systemic risks following the collapse of a major European lender. Analysts attributed the VIX explosion to panic buying of put options, with trading volumes surging 200% above the 30-day average. The Federal Reserve has not yet commented, but market participants are now pricing in a 70% probability of an emergency rate cut within the next 48 hours.