Wall Street fear index hits 3-month high as markets slump, worries over earnings, growth rise

VIX has averaged 13.96 this year

Wall Street's primary measure of investor anxiety, the Cboe Volatility Index (VIX), was at its highest since April on August 1, hitting 19.48 before closing at 18.59. This spike coincided with a significant decline in US stocks as the S&P 500 shed nearly 1.4 percent and the Nasdaq Composite 2.3 percent, nearing a 10 percent decline from last month's record high.

The fear gauge, which has averaged 13.96 this year, has been rising as investors wary about corporate earnings and economic growth. The S&P 500 is down about 4 percent from its July 16 peak. On August 1, some 1.5 million VIX options were traded, nearly double the average daily volume, indicating heightened market apprehension.

Additionally, the VVIX index, which measures expected volatility in the VIX itself, rose 16.93 points to 111.18, indicating expectations of significant near-term market swings.

(With Reuters inputs)