Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., September 7, 2022. (REUTERS/Brendan McDermid)

The Cboe Volatility Index, known as Wall Street’s "fear gauge," on Monday spiked to its highest level since the start of the COVID-19 pandemic as global equities plummeted amid growing concerns of a U.S. recession.

The volatility index, or VIX, rose above 80 on Monday, up from around 23 on Friday and 17 a week ago, marking its highest level in more than four years, according to CNBC. VIX, a closely watched measure of expected volatility in the stock market over the next 30 days, reached as high as 85 in March 2020 but often traded below 20 as the global market recovered from the pandemic.

The Dow Jones Industrial Average tumbled more than 1,000 points at the opening bell on Monday, while the S&P 500 fell 3.6 percent and Nasdaq dropped 4.8 percent.

The financial turmoil followed the Labor Department’s disappointing jobs report on Friday, which showed the unemployment rate rising to 4.3 percent and fewer jobs added by employers than expected in July. Americans filing initial unemployment claims also jumped to a one-year high, according to a Thursday report.

The Federal Reserve’s repeated interest rate hikes over the past two years to combat inflation have heightened fears of an imminent recession, with analysts concerned that the economy could be slowed down too much.

The market upheaval came amid polls showing Vice President Kamala Harris narrowing Republican nominee Donald Trump's lead after she replaced President Joe Biden as the de facto Democratic nominee. Harris secured enough delegates in a virtual roll call vote on Friday and is set to officially accept the nomination this week.

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