Wall Street’s “fear gauge” did something it hasn’t done in more than 10 years.
The CBOE Volatility Index (VIX) hit a low of 9.90 during trading Monday, its lowest level since February 2007.
The index fell to that level even after President Donald Trump told Bloomberg News just before 1 p.m. EDT that he was “looking at” breaking up the big banks. The major U.S. stock indexes, led by bank stocks, declined suddenly on Trump’s remarks before rebounding in a volatile trade.
But by the end of the day, the unexpected comments from the president didn’t cause more people to buy protection in the options market from a market drop, something the so-called Vix measures.
The Nasdaq Composite Index closed at a new record.
Monday marked the second time this year the Vix has traded below 10, the first being Feb. 1. The index broke below 10 for less than a minute after a Federal Reserve monetary policy decision was announced.
Vix since Jan. 1, 2007
—CNBC’s Christopher Hayes contributed to this report.
Watch: Stocks that soar when VIX drops 20 percent