Please note: Data values previously published are subject to revision. For more information, refer to the vintage series in ALFRED®.
Financial market stress declined for the sixth consecutive week, according to the St. Louis Fed Financial Stress Index (STLFSI). For the week ending April 24, 2015, the STLFSI measured -1.232, down modestly from the previous week’s revised value of -1.202. Despite the economy’s overall weakness in the first quarter, financial market stress has declined significantly since it last peaked at -0.879 during the week ending Jan. 16, 2015. (Normal stress=0.)
Over the past week, eight of the 18 indicators contributed negatively to the STLFSI, five fewer than the previous week. The largest negative contribution over the past week was made by the expected inflation rate over the next 10 years (BIR_10yr), followed by the Chicago Board Options Exchange Market Volatility Index (VIX). Seven of the 18 indicators contributed positively to the weekly change in the STLFSI, four more than the previous week. The largest positive contribution was made by the yield on corporate Baa-rated bonds (BAA).
Over the past year, 11 of the 18 indicators made a positive contribution to the index, unchanged from the previous week. For the second consecutive week, the largest positive contribution over the past year was made by the BIR_10yr. Seven indicators made a negative contribution to the index, also unchanged from the previous week. For the 28th consecutive week, the largest negative contribution was made by the BAA.
For an explanation of the 18 component variables in the STLFSI, refer to the STLFSI Key.