The VS TR 2x Long VIX Futures ETF (UVIX) is experiencing a notable uptick, driven by heightened market volatility following the release of stronger-than-expected U.S. jobs data. On January 10, 2025, the U.S. Labor Department reported that employers added 256,000 jobs in December, significantly surpassing the anticipated 155,000. This robust job growth has led to increased speculation about the Federal Reserve's future interest rate policies, as a strong labor market may reduce the urgency for further rate cuts. Consequently, stock futures for major indices like the Dow Jones Industrial Average and the S&P 500 have declined, while Treasury yields have spiked, reflecting investor concerns over potential interest rate adjustments.
The volatility index, which UVIX tracks, has surged as investors brace for potential shifts in monetary policy. The unexpected strength in the labor market has fueled uncertainty, prompting a sell-off in both stock and bond markets. This environment of heightened volatility is beneficial for UVIX, which is designed to capitalize on such market conditions. The current price of the volatility index (^VVIX) stands at 110.00, marking a 5.84% increase, further underscoring the market's reaction to the jobs report.
The UVIX ETF has risen to $3.88, marking a 12.79% increase from its previous close.