The CBOE Volatility Index (VIX) saw a decline of 2.5% to close at 18.71, reflecting a slight reduction in market volatility as investors exhibit cautious optimism ahead of the upcoming consumer price index (CPI) data. This decrease in the VIX suggests a more stable market sentiment, with the S&P 500 Index managing to recover from its morning losses and close above its 100-day moving average. The day's most notable trade was the VIX Jan 2025 17.000 put, indicating a significant interest in hedging against potential market movements. As the market anticipates further insights into inflation trends, the VIX's movement underscores the current investor sentiment.
The VS TR -1x Short VIX Futures ETF (SVIX) experienced a rise, closing at $24.15, up 1.68% from the previous close of $23.75, and further increasing to $24.25 by 4:40 PM on Tuesday, January 14.