Wall Street Fear Index Rises as Trump Tariffs Spook Investors
The most widely-followed market fear gauge was rising on Thursday after President Donald Trump said he would impose 25% tariffs on auto imports into the U.S.
The Cboe Volatility Index, which tracks S&P 500 options contracts and trades under the ticker VIX, climbed 1.5% to just under 19 in early trading. Any reading of above 20 is typically seen as a sign of heightened volatility.
The auto tariffs have put investors on edge, and that could be a sign of things to come. There’s now just four trading sessions left until April 2, the “Liberation Day” deadline when the White House is expected to start imposing reciprocal levies. Unless Trump suddenly scales back his trade plans, expect volatility to creep higher until then.