The CBOE Volatility Index (VIX) saw a slight increase of 0.27% to close at 15.10, reflecting a stable market environment with moderate volatility. This comes as the S&P 500 Index reached a new high, driven by strong performances from tech giants like Nvidia and Oracle, fueled by advancements in AI. The market's resilience, despite ongoing geopolitical uncertainties, indicates investor confidence in AI-related growth prospects. Additionally, a notable shift from bonds to equities was observed as 10-year Treasury yields rose, further supporting the equity market's upward momentum. The significant trade in VIX options, particularly the VIX Feb 2025 40.000 call, suggests some traders are positioning for potential future volatility spikes.
The iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) closed at $42.75, up 1.52% from the previous close of $42.11, and currently stands at $42.70 as of 16:40 on Wednesday, January 22.