From Nasdaq: 2025-05-26 10:00:00

Market volatility spiked last week due to renewed tariff threats from President Trump, causing the CBOE Volatility Index to jump 29.3%. iPath Series B S&P 500 VIX Short-Term Futures ETN, VXX, and other volatility ETFs surged in response, with potential for further gains as market turmoil persists.

Trump threatened a 50% tariff on EU goods and a 25% import tax on smartphones not made in the U.S., including Apple’s iPhone. However, the tariffs on EU goods have been delayed until July 9 for negotiations.

Worries about the U.S. deficit led to a surge in the 30-year Treasury yield, the highest since October 2023. Moody’s downgrade of the U.S. credit rating due to escalating deficits raised concerns about fiscal policy sustainability, resulting in higher yields as investors seek greater compensation for perceived risk.

ETFs like iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX), ProShares VIX Short-Term Futures ETF (VIXY), ProShares Ultra VIX Short-Term Futures ETF (UVXY), and 2x Long VIX Futures ETF (UVIX) can offer short-term gains in volatile markets. Investors should be cautious of contango effects on these products over the long term.



Read more at Nasdaq: Volatility ETFs Spike on Renewed Trump Tariff Threats