The VIX Looks to The Upside Amid Tariff Uncertainty

The futures on CBOE Volatility Index (VIX) gain 1.1%  today, rising above 21 as uncertainty around today Donald Trump tariffs anonucmenet (so-called Liberation Day) increases hedging demand on Wall Street.

• The Trump team has considered imposing a 20% universal tariff on virtually all imports, as opposed to a reciprocal plan that would impose different tariffs on various countries.
• Yesterday, media reported that President Trump’s economic team is preparing a new tariff option for him in the final hours before his trade policy announcement on April 2.
• Now, according to anonymous sources familiar with the plans, the US Trade Representative’s office is preparing a third option which is an across-the-board tariff on a subset of nations that would likely be less than the 20%, ‘previous’ universal tariff option.

Despite that fact, sentiment suggests further risk-off behavior on Wall Street, and even that option may not be enough to support the indices. VIX volatility has been very high in recent days; however, several attempts at a ‘VIX crush’ have failed due to a ‘sleeping fear’ in the markets. Trump’s tariffs will go into effect immediately after the announcement on Wednesday.

Source: xStation5

The material on this page does not constitute financial advice and does not take into account your level of understanding, investment objectives, financial situation or any other specific needs. All information provided, including opinions, market research, mathematical results and technical analyzes published on the Website or transmitted To you by other means, it is provided for information purposes only and should in no way be construed as an offer or solicitation for a transaction in any financial instrument, nor should the information provided be construed as advice of a legal or financial nature on which any investment decisions you make should be based exclusively To your level of understanding, investment objectives, financial situation, or other specific needs, any decision to act on the information published on the Website or sent to you by other means is entirely at your own risk if you In doubt or unsure about your understanding of a particular product, instrument, service or transaction, you should seek professional or legal advice before trading. Investing in CFDs carries a high level of risk, as they are leveraged products and have small movements Often the market can result in much larger movements in the value of your investment, and this can work against you or in your favor. Please ensure you fully understand the risks involved, taking into account investments objectives and level of experience, before trading and, if necessary, seek independent advice.