Investors experienced a shift in sentiment on Tuesday as the VIX, also known as Wall Street's fear gauge, dropped to around 24 in the afternoon. This marked a significant decrease from its spike above 65 on Monday, which was fueled by concerns over a potential US economic downturn.
Despite the improvement, investors are not completely at ease. The VIX's current level is still similar to where it stood on Friday, when the weak July jobs report initiated a decline in stocks that culminated in a global market sell-off on Monday.
The source index rose slightly but remained in what is considered 'extreme fear' territory, indicating that apprehension still lingers among investors.
