Wall Street's Panic Gauge Just Broke a 13-Year Record. Goldman Says History Favors a Rebound
Goldman Sachs Vol Panic Index posted its biggest two-day swing on record last week, beating an April 2013 high. The gauge collapsed during the midterm relief rally, then jumped to 9.57 out of 10 a day later. That reading pushed US stocks into Goldman‘s panic zone, a level crossed only 15 times before. Historically, such extremes preceded S&P 500 gains, but the bank’s traders warn that forced selling may not be over. Sponsored Sponsored Why the Goldman Sachs Panic Index Flipped in 48 Hours Goldmans trading desk runs the gauge, which scores stress in US equities from zero to 10. It draws on options-market signals such as implied volatility and the cost of downside protection. Barchart data puts the combined two-day move at roughly 8.5 points. The previous record, 7.87 points, dated back to April 16, 2013. The swing began on Wednesday, November 4. Stocks rallied after Democrats won both chambers of Congress, and the Dows post-election jump reached 3%. Clients used that rally to sell their hedges. As a result, the Panic Index logged its fourth-largest daily drop on record. That protection disappeared just before investors needed it. On Thursday, an AI chip stock selloff dragged the S&P 500 down 4.36%, its worst session since April 2025. Sponsored Sponsored The index









