The market's so-called fear gauge vaulted above a closely watched level Thursday on "fiscal-cliff" anxiety, before soothing news pulled the Vix down and diminished deep stock-market declines late in the day.

With less than five days remaining to reach a budget agreement to advert the fiscal cliff, the Chicago Board Options Exchange's Volatility Index Thursday jumped to the highest intra-day level since July - before pulling a remarkable turnaround to highlight investor indecisiveness. Stocks pared declines late in the day on reports the House of Representatives will reconvene early for further negotiations.