The Cboe Volatility index spiked on Wednesday, reaching its highest level in more than a month as continuing uncertainty surrounding Turkey weighed on markets. The VIX VIX, +19.68% spiked 25%, or 3.28 points, to 16.59. Wednesday was on track to be the index's biggest one-day percentage gain since June 25, and the increase took it to its highest level since June 29. Despite that, Wall Street's so-called "fear index," which uses S&P 500 options to calculate expectations for volatility over the coming 30 days, remains well below its long-term average between 19 and 20. The VIX typically tends to maintain an inverse correlation to equity prices, and the jump came as stocks fell. The Dow Jones Industrial Average DJIA, -1.12% lost 1.2% while the S&P 500 SPX, -1.13% was off 1.2%. The Nasdaq Composite Index COMP, -1.61% shed 1.6%. While the Nasdaq was pressured by weakness in large-capitalization technology and internet stocks, Wall Street overall fell as investors grew jittery over the health of Turkey's economic situation, and the prospect that the country's weakness could spread to other regions.
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