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VIX Drops 8.37% Amid Rising Market Confidence

The CBOE Volatility Index (VIX) decreased by 8.37% to close at 15.77, indicating a projection of about 1% in daily S&P 500 movement over the next 30 days. Meanwhile, the S&P 500 Index (SPX) rose by 0.39% to finish the day at 6,061.48 on February 5, 2025. This decline in the VIX, coupled with the rise in the SPX, suggests increased market confidence and reduced volatility expectations. The day's trading volume data was unavailable, but the most significant trade was the VIX Feb 2025 19.000 call, with a volume of 15,893 contracts. The VIX opened at 17.54, higher than the previous close, before reaching a high of 17.75 and a low of 15.77. The ongoing tax and spending negotiations in Washington are pivotal, as potential fiscal policy changes could impact market sentiment. The decrease in the VIX reflects a temporary easing of market concerns, although the fiscal policy outcomes remain a critical factor for future volatility.