By Saqib Iqbal Ahmed

NEW YORK (Reuters) -Wall Street’s most watched gauge of investor anxiety rose to a near five-month high before paring gains on Tuesday as U.S. stocks whipsawed on renewed concerns over a U.S.-China trade conflict.

The Cboe Volatility Index – an options-based indicator that reflects demand for protection against drops in the stock market – was last up 0.7 points to 19.68. The index had reached 22.94, its highest since May 23, earlier in the day.

A reading of 20 or higher on the VIX is associated with robust demand for options protection.

The recent rise in the index – often called the “Wall Street fear gauge” – pointed to investors waking up to the risks that lurk for stocks after an extended period of market calm that enveloped markets even as equities logged new r

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