"The CBOE Volatility Index (^VIX) has shed nearly 30% over the past month, falling from a 12-month high of just over 31 in late March to a reading inside the normal range."
"Trump announced after Tuesday's close that he would extend the expiring ceasefire with Iran until Tehran submits a unified peace proposal, with no fixed end date."
"A VIX reading near 19 signals options traders are no longer pricing in crisis-level turbulence. The rapid mean-reversion from nearly 26 in early April to current levels in roughly two weeks is textbook VIX behavior."
"Small caps outperforming large caps suggests genuine risk appetite returning to markets, with the iShares Russell 2000 ETF gaining 0.94% on the day and recovering 13% over the past month."
The CBOE Volatility Index dropped to 19, indicating reduced market fear. President Trump's ceasefire extension with Iran has positively influenced stock performance. The S&P 500, Dow, and Nasdaq experienced declines earlier, but the VIX fell below 20, leading to gains in equity index ETFs. The SPDR S&P 500 ETF Trust rose 0.73%, while the Invesco QQQ Trust climbed 0.85%. Small caps outperformed large caps, suggesting a return of risk appetite. The 10-year Treasury yield remained stable, indicating no inflation concerns from the Iran situation.
Read at 24/7 Wall St.
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