CBOE VIX Volatility Index gives back a portion of its Monday gains.
The CBOE VIX (NYSEARCA:VXX) pulled back sharply on Tuesday, as equities staged a large relief rally after posting their worst single-day slide of 2019.
The Chicago Board Options Exchange (CBOE) Volatility Index, commonly known as the “fear index,” declined 12.4% to 18.01. VIX, which trades on a scale of 1-100, rose more than 30% at the start of the week.
In stocks, the S&P 500 Index (NYSEARCA:SPY) gained 0.8% on Tuesday.
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 2.6%.
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 7.8%.
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 10.5%.
The Final Word: The return of volatility has complicated the short-term outlook for stocks. That being said, a swift trade agreement between the U.S. and China will likely put the bull market back on track.