The recent surge in the VIX index, reaching its highest level in over a week, underscores the heightened market volatility as investors grapple with the downturn in major tech stocks and reassess risk premiums. This increase in volatility is driven by the significant pullback in tech stocks, which has led to a broader decline in the S&P 500. Despite the downturn, the market correction has made equities more attractive by improving price-to-earnings ratios, prompting analysts to revise earnings growth forecasts upward for the coming year. This recalibration of valuations and growth expectations has contributed to the increased uncertainty reflected in the VIX's rise.
The VS TR -1x Short VIX Futures ETF (SVIX) experienced a decline, dropping 0.93% to $29.72 at 12:40 PM on Monday, December 9.