The VS TR 2x Long VIX Futures ETF (UVIX) closed down 9.92% at $3.18 on January 3rd, as market volatility continued to decline sharply. The underlying VVIX index, which measures the expected volatility of the S&P 500, fell by 11.67% to 94.15. This significant drop in volatility is attributed to a strong rebound in U.S. equity markets, with the S&P 500 rising 1.3% and the Nasdaq Composite gaining 1.8% on the same day. The Cboe Volatility Index (VIX) also traded lower, reflecting a calmer market environment as investors reacted positively to stronger-than-expected ISM manufacturing data and an optimistic economic outlook from Richmond Fed President Tom Barkin. The muted VIX option volume further indicates reduced demand for volatility hedges.