The iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) surged 8.55% to close at $56.14 on December 19, 2024, as the CBOE Volatility Index (VIX) experienced a historic spike. The VIX, often referred to as Wall Street's "fear gauge," soared by 74% to close at 27.62, marking the second-largest percentage increase in its history. This dramatic rise followed the Federal Reserve's announcement that it would scale back its rate-cutting plans, unsettling investors who had anticipated more aggressive monetary easing. The Fed's decision to limit rate cuts to just two next year, down from the previously projected four, has heightened market anxiety, leading to a significant sell-off in equities, with the Dow Jones Industrial Average plummeting by 1,100 points. The VIX's surge reflects a rush by investors to purchase put options as a hedge against potential declines, indicating a sharp increase in market uncertainty.