The CBOE Volatility Index fell on Friday, dropping to its lowest level in over two decades as stocks traded at records despite the failure of U.K. Prime Minister Theresa May’s Conservative Party to maintain a majority in parliament. The VIX, the so-called fear gauge, slid 6.5% to 9.50. The last time it was that low was Dec. 22, 1993 when it closed at 9.31, according to FactSet. Major U.S. indexes earlier hit intraday highs with the S&P 500 up 12 points, or 0.5%, to 2,445, while the Dow Jones Industrial Average gained 115 points, or 0.6%, to 21,298. The Nasdaq added 14 points, or 0.2%, to 6,336. “The result wasn’t a complete shock. Bookmakers’ odds pointed to a 15%-20% chance of a hung parliament ahead of polling day compared to virtually zero when the election was called,” said John Higgins, chief markets economist at Capital Economics, in a note.
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