The CBOE Volatility Index (VIX) experienced a notable decline of 7.57% to close at 17.21, reflecting a decrease in market volatility and a boost in investor confidence. This shift is attributed to optimism surrounding potential advancements in US-China trade negotiations and a reduction 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 major tech stocks bolstered the market. Despite the VIX's initial higher opening, the day's trading saw a balanced sentiment with a slight bullish tilt, as evidenced by the trading volume and the significant activity in VIX options.
The iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) closed at $43.69, down 3.06% from the previous day's close of $45.07, and currently stands at $43.97, reflecting a 2.44% decrease.