- The CBOE Volatility Index has spiked more than 80% since President Donald Trump’s inauguration. Wall Street’s “fear gauge,” which measures expected volatility using S&P 500 put and call options, is not without its flaws. Nonetheless, the scheduled announcement of “reciprocal” tariffs early next month looms large for markets.
It’s not hard to decipher why Wall Street’s “fear gauge” has been on the rise. President Donald Trump’s on-again, off-again tariff salvos have spooked markets, and the CBOE Volatility Index, or VIX, has spiked more than 80% since the week of his inauguration. About 20% of that increase came during Monday’s selloff, though the index cooled on Tuesday afternoon as stocks reversed their losses from earlier in the day after Ukraine agreed to a U.S.-led ceasefire plan if Russia accepts the deal.
