New York: Strong earnings boosted U S stocks yesterday, driving the S&P 500 .SPX to a record high while also sending a popular options-based gauge of expected price volatility down to a more than 23-year low.
The CBOE Volatility Index .VIX, better known as the VIX and the most widely followed barometer of expected near-term stock market volatility, was down 0.24 points to 9.19, after earlier falling to 9.04, its lowest since December 1993. A close at its current level would be its lowest ever.
The VIX is derived from the price of S&P 500 Index .SPX options. A low VIX reading typically indicates a bullish outlook for stocks. The volatility index, whose long-term average level is around 20, has been extremely subdued this year as a surging stock market has chilled demand for options that provide protection against price declines, driving down the index itself. On Monday the index closed below 10 for the eighth straight day, marking its longest such streak ever.
Market experts peg the relative tranquility in stock market gyrations to a mix of factors including a generally upbeat macroeconomic backdrop and the lack of any big, risky events .
