The CBOE Volatility Index (VIX) rose by 3.72% to close at 16.43, while the S&P 500 Index (SPX) declined by 0.5% to finish at 6040.53 on January 31, 2025. This increase in the VIX suggests heightened market volatility and uncertainty, with the market expecting daily movements of approximately 1% in the S&P 500 over the next 30 days. The VIX opened at 15.45, higher than the previous close of 15.84, and fluctuated between a high of 17.09 and a low of 14.90. The day's trading volume data was not available, but the most significant trade was the VIX Feb 2025 15.000 put, with a volume of 30,631 contracts. The rise in the VIX coincided with the announcement of new tariffs set to begin on February 1, which has increased the market's fear premium and led to a broad risk-off sentiment. This environment has prompted investors to adopt a more cautious stance, as evidenced by the increased demand for downside protection. The decline in the SPX reflects concerns over potential earnings declines due to increased costs, particularly impacting sectors reliant on global trade.