The CBOE Volatility Index (VIX) experienced a notable rise of 2.98% to close at 16.60, driven by increased market uncertainty and dovish comments from Federal Reserve Governor Christopher Waller, who hinted at potential rate cuts. This rise in the VIX reflects heightened expectations of market volatility, as investors react to a mix of economic signals, including a strong dollar and rising import prices. The increased demand for safe-haven assets, such as gold, further underscores the cautious sentiment prevailing in the market. The S&P 500's slight decline of 0.21% adds to the narrative of a market grappling with mixed economic indicators and potential shifts in monetary policy.
The VS TR -1x Short VIX Futures ETF (SVIX) saw a decline, closing at $26.06, down 0.15% from the previous close of $26.10, and further dropping to $25.89, marking a 0.80% decrease as of 16:40 on Thursday, January 16.