VIX loses 3% reaching 4.5 month low as optimism drives Wall Street📉

Continued optimism on Wall Street—driven largely by the postponement of the final tariff deadline from July 9 to August 1—is pushing the CBOE Volatility Index (VIX) futures to their lowest levels since February 24, 2025. U.S. equity indices are posting modest gains today, ranging between 0.15% and 0.25%, while the U.S. Dollar Index is stabilizing around 97.2. Markets are reacting positively to the prospect of a more dovish Federal Reserve policy in the second half of 2025 and especially throughout 2026, as well as expectations for another solid earnings season for American companies.

VIX (H1 Interval)

The VIX index is down over 3% today, despite the absence of direct market catalysts and a relatively quiet macroeconomic calendar. The only notable U.S. data release scheduled is the wholesale inventory change for July, due at 4:00 p.m. CET. Investors are increasingly pricing in the likelihood of continued gains in U.S. equities ahead of the upcoming Q2 2025 earnings season. On the hourly chart, the RSI indicator has fallen to 15—signaling extreme oversold conditions.

Source: xStation5