Be afraid? More volatility is coming

A trader works on the floor of the New York Stock Exchange.
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A trader works on the floor of the New York Stock Exchange.

The fear is back in the equity markets.

Violent gyrations in currency and oil markets are finally spilling over into stocks as investors wrestle with uncertainty over the Federal Reserve's initial rate hike and a possible earnings decline for the second quarter.

The CBOE Volatility Index (VIX) tracks market expectations of 30-day volatility in the S&P 500 and is considered the best gauge of fear in the market. It hit a low for the year last Friday, but this week, shot up almost 47 percent to its intraday high Thursday.