The CBOE Volatility Index (VIX) saw a notable decline of 2.5% to close at 18.71, reflecting a decrease in market volatility as investors exhibit cautious optimism ahead of the upcoming consumer price index (CPI) data release. This reduction in the VIX suggests a more stable market sentiment, with the S&P 500 Index managing to recover from earlier losses and close slightly higher. The day's trading activity included significant interest in VIX options, particularly the VIX Jan 2025 17.000 put, indicating that some investors are positioning themselves for further declines in volatility. The market's focus remains on inflation trends, which are expected to be clarified by the forthcoming CPI data.
The ProShares Short VIX Short Term Futures ETF (SVXY) experienced a rise, closing at $49.01, up 1.03% from the previous close of $48.51, and currently trading at $49.09 as of 16:40 on Tuesday, January 14.