The CBOE Volatility Index (VIX) experienced a notable increase of 2.98% to close at 16.60, reflecting heightened market uncertainty. This rise in the VIX comes amid a backdrop of dovish comments from Federal Reserve Governor Christopher Waller, suggesting potential rate cuts, which have contributed to increased market volatility. The S&P 500 Index also saw a slight decline, indicating investor caution. The market's response to these economic signals, along with a strong dollar and rising import prices, has driven investors towards safe-haven assets, further amplifying the VIX's upward trajectory.
The ProShares Short VIX Short Term Futures ETF (SVXY) saw a decrease, closing at $51.00, down 0.08% from the previous close of $51.04, and further declining to $50.72 after hours on Thursday, January 16.