Measures of volatility in financial markets have hit the lowest levels since the pandemic rocked stock and bond prices last year, as investors bet on tranquility and ride a wave of optimism about the US economic recovery.

The closely followed Vix index, which measures implied volatility on S&P 500 index options, earlier this month dropped below its long-term average of 20 and remained there even during a period of losses for equities last week. On Monday, the Vix ended the day at 17.64, roughly a fifth of the level seen at the most intense point of last year’s shake-out in stocks.

Calmer trading by retail investors, who had roiled the market with idiosyncratic bets on unloved stocks during the pandemic, has helped to settle the volatility, though some tussles between sectors persist beneath the surface.