Geopolitical tensions, particularly the ongoing US-China trade review, have contributed to a decrease in market volatility, as evidenced by the CBOE Volatility Index (VIX) closing down 1.13% at 14.85. This decline in the VIX suggests a slight reduction in expected market fluctuations, with projections of less than 1% daily movement in the S&P 500 over the next month. The technology sector, sensitive to trade policy shifts, has been notably impacted, adding to investor caution. Despite these uncertainties, the market's overall sentiment appears to be stabilizing, as reflected in the VIX's performance today.
The ProShares Short VIX Short Term Futures ETF (SVXY) closed at $52.11, marking a 0.21% increase from its previous close of $52.00 on Friday, January 24.