The CBOE Volatility Index (VIX) saw a significant decline of 8.37% to close at 15.77, reflecting a temporary easing of market concerns and a projection of about 1% daily movement in the S&P 500 over the next month. This drop in the VIX, alongside a 0.39% rise in the S&P 500, indicates increased market confidence and reduced expectations of volatility. The ongoing tax and spending negotiations in Washington remain a critical factor, as potential fiscal policy changes could influence future market sentiment. The most notable trade was the VIX February 2025 19.000 call, with a volume of 15,893 contracts, highlighting investor interest in hedging against potential future volatility.
The ProShares Short VIX Short Term Futures ETF (SVXY) closed at $51.34, marking a 1.10% increase from its previous close of $50.78 on Wednesday, February 5.