The CBOE Volatility Index (VIX) saw a significant decline of 7.57% to close at 17.21, reflecting a reduction in market volatility and a boost in investor confidence. This drop aligns with optimism surrounding potential progress in US-China trade talks and a decrease in Treasury yields, which have alleviated fears of economic overheating. The S&P 500 Index also benefited from this positive sentiment, rising by 0.72% as gains in big tech stocks contributed to the upward momentum. The VIX's trading volume was notably higher than its 30-day average, with a slight bullish tilt indicated by the predominance of call options.
The ProShares Short VIX Short Term Futures ETF (SVXY) experienced a rise, closing at $50.78, up 1.54% from the previous close of $50.01. As of 16:40 on Tuesday, February 4, the ETF's price was $50.50, reflecting a 0.98% increase from the prior close.