2/5

VXX Drops 2.04% as Market Confidence Grows Amid Fiscal Negotiations

The ongoing tax and spending negotiations in Washington have contributed to a temporary easing of market concerns, as reflected in the significant decline of the CBOE Volatility Index (VIX) by 8.37% to close at 15.77. This decrease suggests increased market confidence and reduced expectations of volatility, aligning with the S&P 500 Index's rise of 0.39% to 6,061.48. The most notable trade was the VIX Feb 2025 19.000 call, with a volume of 15,893 contracts, indicating that while immediate concerns have lessened, investors are still hedging against potential future volatility. The VIX's movement today, opening at 17.54 and reaching a high of 17.75, underscores the market's cautious optimism amid fiscal policy discussions.

The iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) experienced a decline, closing at $42.80, down 2.04% from the previous close of $43.69, and further slipping to $42.75 by 16:40 on Wednesday, February 5.