Wall Street\'s Fear Gauge Flashes Green Again

Wall Street’s Fear Gauge Flashes Green Again

Robust earnings should calm the stock market, but calm brings its own risks

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Panic in the stock market is officially over—at least according to derivatives markets.

The Cboe Volatility Index remains elevated after hitting its highest level since February during last week’s market rout. The VIX is known as Wall Street’s “fear gauge” because it tracks the expected swings in the S&P 500 index using options contracts.

But...