The CBOE Volatility Index (VIX) experienced a 2.5% increase, closing at 13.92, indicating a rise in market volatility as the S&P 500 Index fell by 0.54%. This uptick in the VIX reflects growing market uncertainty amid mixed economic signals and anticipation of the Federal Reserve's next interest rate decision. Investors are navigating a complex landscape of central bank actions and economic data, contributing to heightened volatility expectations. The significant trading activity in VIX options, particularly the VIX Dec 2024 13.000 put, underscores the market's cautious stance.
The ProShares Trust Ultra VIX Short Term Futures ETF (UVXY) rose by 1.59% to $19.17 as of 16:40 on Thursday, December 12.