VIX Daily Update: Fear Index Rises as Trump Kills Stimulus Talks
CBOE VIX Volatility Index rises on Tuesday as stocks give up gains.
The CBOE VIX (VXX) was rose on Tuesday, as stocks reversed course in the final hour after President Trump halted stimulus negotiations with Democratic rivals.
The Chicago Board Options Exchange Volatility Index reached an intraday high of 30 on a scale of 1-100 where 20 represents the historical average. It would eventually settle up 6% at 29.65.
In stocks, the large-cap S&P 500 Index (SPY) declined 1.4% on Tuesday.
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 advanced 1.3%.
ProShares Short VIX Short-Term Futures (SVXY) to track the inverse daily performance of the S&P 500 VIX Short Term Futures Index. SVXY declined 0.7%.
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ProShares Ultra Short Term VIX Futures: (UVXY) UVXY is designed to deliver 1.5X (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 advanced 2%.
The Final Word: Investors continue to eye the global spread of COVID-19. As of Tuesday, more than 35.6 million people had been infected with the novel disease, including 7.4 million in the United States.