Wall Street Fear Index Stays High as Tariffs Take Effect
The most widely followed gauge of market fear and uncertainty was rising again, having spiked Monday after President Donald Trump signaled he would go through with his plan to impose tariffs on Canada and Mexico.
The Cboe Volatility Index, which tracks S&P 500 options contracts and trades under the ticker VIX, climbed 1.2% to 23.05 in early trading. Any reading over 20 is an indicator of relatively high volatility.
The uptick in the fear index reflects investor anxiety about Trump’s tariffs on imports from Canada, China, and Mexico. Ottawa and Beijing have already signaled they will hit back with levies of their own, raising the likelihood that tensions escalate into a full-on trade war.