Click the chart for more data on the VIX. By Ken Sweet, contributing writerApril 18, 2011: 11:59 AM ET
NEW YORK (CNNMoney) — Wall Street’s fear gauge soared more than 20% Monday, after Standard & Poor’s slashed its outlook on U.S. debt to negative.
The VIX (VIX) was up19.6% to a reading of 18.32 — its highest level in three weeks. Earlier it was up nearly 23%.
However, the index is still well below the elevated levels it hit in mid-March, when the nuclear catastrophe in Japan became frontpage news.
A reading of 30 is typically considered a fear tipping point.The VIX index hit an all-time high of 90 during the height of the financial crisis.
On Monday, the S&P lowered its credit outlook for the United States’ “AAA” rating to “negative” from “stable,” citing uncertain political debate around the nation’s fiscal problems.
“The outlook reflects our view of the increased risk that the political negotiations, over when and how to address both the medium- and long-term fiscal challenges, will persist until at least after national elections in 2012,” said S&P credit analyst Nikola Swann.
The news sent the Dow falling more than 200 points, bond yields rising, and gold spiking to near $1,500 an ounce.