The CBOE Volatility Index (VIX) saw a decrease of 2.5% to close at 18.71, reflecting a slight reduction in market volatility as the S&P 500 Index edged up by 0.11%. This decline in the VIX suggests a cautious optimism among investors, who are closely watching for the upcoming consumer price index (CPI) data to gain insights into inflation trends. The S&P 500's recovery from morning losses and its position above the 100-day moving average indicate a stable market sentiment, despite mixed signals from recent inflation data. The most significant trade of the day was the VIX Jan 2025 17.000 put, with a volume of 32,406 contracts, highlighting the market's focus on potential future volatility.
The ProShares Trust Ultra VIX Short Term Futures ETF (UVXY) experienced a decline, dropping 3.74% to $21.62 as of 4:40 PM on Tuesday, January 14.