Wall Street Fear Gauge Plummets as U.S. and China Slash Tariffs
Investors were feeling a lot calmer on Monday after the U.S. and China brokered a deal to slash tariffs on each other’s goods for the next 90 days.
The Cboe Volatility Index, which tracks S&P 500 options contracts and trades under the ticker VIX, tumbled 9.6% to 19.79 in early trading. It’s the first time since late March that the widely-followed fear gauge has dropped below 20.
The VIX was tumbling after Washington said it would lower its “reciprocal” tariffs on most Chinese goods to 10% from 125%. The separate 20% tariff that the Trump administration imposed over what it calls the fentanyl trade will remain in place. Beijing said it would cut its retaliatory levies on U.S. goods to 10% from 125%.