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. Speculation about potential tariffs set to begin on February 1 has left investors on edge, contributing to increased market volatility. Despite this, equity markets have shown resilience, as the absence of immediate tariff implementations has provided some relief. However, fixed-income and FX markets remain cautious, reflecting a heightened sensitivity to rapid policy shifts. The VIX, a key measure of market volatility, has been impacted by this environment, though the market's current low risk premium around tariff deadlines suggests skepticism about the immediacy or impact of these policies.
The ProShares Short VIX Short Term Futures ETF (SVXY) has experienced a rise, climbing 1.05% to $52.11 as of 10:20 AM on Thursday, January 23.