The CBOE Volatility Index (VIX) saw a notable decline of 4.23% to close at 13.58, reflecting a market environment characterized by increased confidence and reduced volatility. This movement aligns with the S&P 500 Index's rise of 0.82%, suggesting that investors are feeling more optimistic about the market's near-term prospects. The significant trading volume in VIX Dec 2024 14.000 puts indicates a continued focus on downside protection, even as the cost of S&P 500 put options remains low. This trend highlights a cautious optimism among investors, who are hedging against potential risks while navigating the uncertainties surrounding the Federal Reserve's interest-rate decisions.
The iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) experienced a slight decline, closing at $42.13, down 0.78% from the previous close of $42.46.