The latest US consumer price index data has reinforced expectations for a Federal Reserve interest rate cut, creating a positive sentiment across global equity markets. This benign inflation report has led to a surge in US stock indices, with the S&P 500 and Nasdaq 100 both advancing, particularly driven by strong performances in the tech sector. The anticipation of a 25 basis point rate cut by the Fed later this month has also buoyed equity futures in Japan and Australia, as lower US interest rates are expected to enhance global liquidity and borrowing conditions. Meanwhile, the VIX, Wall Street's fear gauge, has fallen below 14, indicating a calmer market outlook and a favorable environment for risk assets like equities.
The VS TR -1x Short VIX Futures ETF (SVIX) experienced a modest increase, rising 0.85% to $29.60 as of 18:00 on Wednesday, December 11.