The recent escalation of tariffs by the United States, particularly targeting Colombia, has intensified fears of retaliatory measures, leading to increased volatility in financial markets. This uncertainty has prompted a risk-off sentiment among investors, who are now gravitating towards safer assets amid concerns over potential inflationary pressures and disruptions to global supply chains. The heightened volatility is evident in the VIX, which has surged as global trade tensions rise, reflecting increased investor anxiety. The VIX's significant jump underscores the market's sensitivity to geopolitical developments and potential economic policy shifts.
The ProShares Trust Ultra VIX Short Term Futures ETF (UVXY) experienced a notable increase, rising 13.58% to $20.24 at 13:40 on Monday, January 27.