There are just two days to the Aug. 1 deadline for the imposition of U.S. tariffs on countries that have not reached a deal with the Trump administration. You wouldn’t know it looking at market volatility.
The Cboe Volatility Index, which tracks S&P 500 options and trades under the ticker VIX, was down 1.8% at 15.70 early on Wednesday. A reading below 20 is typically seen as a sign of relatively low volatility.
That suggests the market is certain any tariffs imposed on Friday will be at manageable levels. The big trade negotiation between the U.S. and China meanwhile looks set for another extension to the tariff truce between world’s two largest economies.