The early days of the Trump administration have injected a significant level of uncertainty into the markets, with policy announcements creating a chaotic trading environment. Investors are particularly focused on the potential for new tariffs, speculated to begin on February 1, which has led to increased market volatility. Despite this, equity markets have shown resilience, as the absence of immediate tariff implementations has provided some relief. However, the fixed-income and FX markets remain cautious, reflecting a heightened sensitivity to rapid policy shifts. This environment has impacted the VIX, a key measure of market volatility, which has seen a slight decline as the market remains skeptical about the immediacy or impact of these policies.
The VS TR -1x Short VIX Futures ETF (SVIX) has responded to these dynamics, rising 1.95% to $27.18 as of 10:20 AM on Thursday, January 23.