The VIX, or Volatility Index, tends to increase when market uncertainty and fear rise. This often happens during periods of economic instability, geopolitical tensions, or major financial events. Some key triggers include:
- Stock Market Declines – When investors panic and sell off stocks, the VIX rises.
- Economic Data Surprises – Unexpected inflation reports, interest rate hikes, or recession fears can push volatility higher.
- Geopolitical Events – Wars, trade disputes, or sudden policy changes can create uncertainty.
- Earnings Season – If major companies report disappointing earnings, volatility can spike.
Recently, the VIX has surged due to concerns over China’s new tariffs and Treasury market movements. If the index jumps close to 40, it may signal peak fear and a potential market bottom.
