CBOE VIX Volatility Index maintains narrow range at the start of the week.
The CBOE VIX (NYSEARCA:VXX) edged slightly lower on Monday, as investors cheered the resolution of a U.S.-Mexico immigration dispute that could have resulted in a fresh round of tariffs on Mexican imports.
The Chicago Board Options Exchange (CBOE) Volatility Index, commonly known as the VIX, reached a session low of 15.84 on a scale of 1-100 where 20-25 represents the historic average. The so-called “fear index” would eventually settle at 16.00, where it was down less than 2% on the day.
In stocks, the large-cap S&P 500 Index (NYSEARCA:SPY) gained 0.5% on Monday.
ProShares Short VIX Short-Term Futures (SVXY) to track the inverse daily performance of the S&P 500 VIX Short Term Futures Index. SVXY advanced 0.6%.
ProShares Ultra Short Term VIX Futures: (NYSEARCA:UVXY) UVXY is designed to deliver 2X (leveraged) returns of the day’s moves in the S&P 500 VIX Short Term Futures Index. It tacks the two front months of the futures contract. UVXY declined 1.3%.
VelocityShares Daily 2x VIX Short Term Futures ETN (NYSEARCA:TVIX) TVIX is a leveraged VIX ETN designed to deliver 2X the returns of the daily S&P 500 Short Term Futures Index. TVIX declined 1.7%.
The Final Word: Volatility is receding further into the background now that investors have priced in an interest rate cut this summer. Fed Fund futures prices imply a strong likelihood that the U.S. central bank will lower its benchmark interest rate as early as July.