Wall Street’s “fear gauge” did something it hasn’t done in more than 10 years.
The CBOE Volatility Index (VIX) hit a low of 9.90 during trading Monday, its lowest level since February 2007.
The index fell to that the level even after President Donald Trump told Bloomberg News just before 1pm ET that he was “looking at” breaking up the big banks. The major U.S. stock indexes, lead by bank stocks, declined suddenly on Trump’s remarks before rebounding in a volatile trade.
But by the end of the day, the unexpected comments from the president didn’t cause more people to buy protection in the options market from a market drop, something the so-called Vix measures.
The Nasdaq Composite Index closed at a new record.
Monday marked the second time this year the Vix has traded below 10, the first being Feb. 1. The index broke below 10 for less than a minute after a Federal Reserve monetary policy decision was announced.
Vix since Jan. 1, 2007
Source: FactSet
—CNBC’s Christopher Hayes contributed to this report.