Market Extra: Volatity aftershocks? Here’s what stock-market investors need to know

When bets that stock-market volatility would remain subdued—previously described as perhaps the world’s most crowded trade—turned sour Monday, the shakeout was swift, but left investors to ponder the potential aftershocks.

A record-breaking spike in volatility as measured by the Cboe Volatility Index, or VIX VIX, +20.66% on Monday appeared to amplify, if not drive, that day’s stock-market carnage. The S&P 500 index SPX, -3.75% and Dow Jones Industrial Average DJIA, -4.15% saw renewed pressure Thursday, leaving both gauges off more than 10% from their all-time peak to put them in correction territory.

The VIX, which is a measure of expected volatility on the S&P 500 over the coming 30 days, dipped in morning trade but roared back later in the day, ending at 33.46, a rise of 21% on the day.

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