Wall Street’s fear gauge hits highest level since June

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., January 31, 2018.

A measure of fear in the stock market just hit its highest level in three months, as fears over rising rates, a possible currency calamity and a recession mount.

When the stock market last hit its bear bottom in mid- June, the CBOE's volatility index spiked to its highest level since.

The implied volatility of the S&P 500 hasn't closed above 30 in over a month. The level of fear on Wall Street is tracked by the index.

Currency market turmoil and the dollar's climb to a 20-year-high have contributed to the jump in the VIX. The Federal Reserve's vow to tame inflation with aggressive rate hikes caused investors to dump risk assets.

The average closed below 30,000 for the first time this year on Friday and is now at its lowest point of the year. The S&P 500 fell for the fifth time in six weeks.

We are off the worst levels of the session, but stock futures are pointing to more losses.

It could be a sign that the stock market is nearing a turning point since investor fears are reaching extreme levels.