Wall Street Fear Index Drops After U.S. Reciprocal Tariffs Kick In
Investors were feeling a lot calmer on Thursday after President Donald Trump’s so-called reciprocal tariffs on scores of trading partners finally took effect, putting an end to one potential source of market uncertainty.
The Cboe Volatility Index, or VIX, dropped by more than half a point to just over 16. Any reading of below 20 tends to indicate relatively low volatility.
Trump’s levies took hold just after midnight after months of chopping and changing from the White House. Uncertainties about his sector-specific tariffs and negotiations with China remain, but investors appear to be taking the trade developments in their stride for now.