Wall Street Fear Index Jumps as Tariff Fears Resurface
Investors were feeling on edge Tuesday as uncertainty about President Donald Trump’s trade policies looked set to drag down the blue-chip U.S. stock indexes.
The Cboe Volatility Index, a widely followed fear gauge that tracks S&P 500 options contracts and trades under the ticker VIX, climbed 4.5% to just under 25 in early trading. Any reading of above 20 is seen as a sign of relatively high volatility.
Trump’s promise to impose tariffs on foreign films has reignited fears about the impact his levies could have on the market. Auto maker Ford also shelved its guidance and warned of a $1.5 billion hit to its profit, the latest indicator of how much disruption the levies could cause.