VIX Daily Update: Fear Index Pulls Back Sharply as Stocks Recover
The CBOE VIX Volatility Index pulled back sharply on Wednesday.
The CBOE VIX (VXX) corrected lower on Wednesday, as U.S. equity markets rebounded following consecutive declines.
The Chicago Board Options Exchange Volatility Index, commonly known as the VIX, reached an intraday low of 15.38 on a scale of 1-100, where 20 represents the historical average. It would eventually settle down 8.9% at 17.02.
In stocks, the large-cap S&P 500 Index (SPY) advanced 0.9% on Wednesday.
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 5.4%.
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 2.8%.
Sign up for our Newsletter & get the FREE eBook
Retirement Day Trader:
How to Sell Weekly Options for Steady Income
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. UVX declined 7.4%.
The Final Word: The U.S. economy is slowly recovering from the COVID-19 pandemic. As of Wednesday, more than 31.8 million people had been infected with the disease.