VIX Daily Update: Volatility Sinks to Five-Week Low as Stock-Rally Intensifies

CBOE VIX Volatility Index touches lowest level since early February.

The CBOE VIX (NYSEARCA:VXX) declined sharply on Friday, reaching its lowest level in five weeks after an upbeat jobs report boosted stocks.

The Chicago Board Options Exchange (CBOE) Volatility Index bottomed at 13.31 on a scale of 1-100 where lower readings correspond with periods of relative calm on Wall Street. The VIX settled down nearly 12% at 14.57.

In equities, the large-cap S&P 500 Index (NYSEARCA:SPY) rose 1.7% on Friday.

Major VIX ETFs:

iPath S&P 500 VIX Short Term Futures ETN: (NYSEARCA:VXX) Designed to offer exposure to the S&P 500 VIX Short Term Futures Index Total Return. The Index uses CBOE Volatility Index futures by way of a long position in the first and second month VIX Futures contracts. VXX declined 7.7%.

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 4.7%.

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 11.9%.

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 13.8%.

The Final Word: Stocks appear to be back on track, but significant risks remain. Over the next few weeks, investors will turn their attention to monetary policy as the Federal Reserve gets set to raise interest rates.