The early days of the Trump administration have introduced significant uncertainty, creating a chaotic trading environment as investors navigate potential policy shifts. Speculation around tariffs, particularly those anticipated to begin on February 1, has heightened market volatility. Despite this, equity markets have shown resilience, likely due to the absence of immediate tariff implementations. However, fixed-income and FX markets remain cautious, reflecting a heightened sensitivity to rapid policy changes. The VIX, a key measure of market volatility, has seen a tempered response, slightly declining as the market assesses the potential impact of these policies.
The iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) experienced a decline, dropping 2.22% to $41.80 at 10:20 AM on Thursday, January 23.