St. Louis Fed Financial Stress Index Dips Slightly

Please note: Data values previously published are subject to revision. For more information, refer to the vintage series in ALFRED®.

Financial stress declined slightly in the latest reporting week, according to the St. Louis FedFinancial Stress Index (STLFSI). For the week ending July 1, the index measured -0.928, a decrease of 0.014 from the previous week’s revised value of -0.914. Zero represents normal financial stress.  

Over the past week, eight of the 18 indicators contributed negatively to the weekly change in the index, one fewer  than in the previous week. The two largest negative contributions were made by the Chicago Board Options Exchange Market Volatility Index (VIX) and by the Baa-rated corporate bond yield (BAA).  Nine indicators contributed positively to the weekly change in the index,  two more than in the previous week. The largest positive contribution was made by the difference between the Merrill Lynch High-Yield Corporate Master II Index and the 10-year U.S. Treasury security (HighYield_CRS).

Over the past year, 12 of the 18 indicators made a positive contribution to the index, one fewer than in the previous  week.  Six indicators made a negative contribution,  one more than in the previous week. The largest positive contribution over the past year was made by the HighYield_CRS. 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.