VIX Surges 8.5% to 24.80 Amid Tariff Uncertainty

The panic index VIX, a key indicator of market volatility, surged to a more than two-week high of 24.80 on Monday due to the high uncertainty surrounding the U.S. tariff policy direction and potential market reactions. This rise in the VIX index reflects the growing anxiety among investors about the potential impact of tariff policies on the market. The index closed at 22.77 on Tuesday, indicating a slight decrease but still remaining at elevated levels.

Mark Spindel, Chief Investment Officer of Potomac River Capital LLC, commented on the market's current state, stating, "I think the market is indeed holding its breath." He expects this "panic index" to potentially rise to the 30 level. This level typically signifies that the market is entering a highly risk-averse mode, where investors are seeking safe havens to protect their assets from potential market downturns.

According to the analyst's forecast, the VIX index could rise to a high safe haven level, indicating a significant increase in market volatility and risk aversion. This forecast is based on the current uncertainty surrounding the U.S. tariff policy direction and potential market reactions. Investors are advised to closely monitor the VIX index and other market indicators to make informed investment decisions.