UVIX is trading 2.2% down today as implied volatility continues to compress alongside a strong risk-on tone in equity futures.
- S&P 500, Nasdaq, and Dow futures are all trading higher, supported by upbeat tech earnings and cooling inflation data.
- The 2x leveraged long VIX futures ETF is facing downward pressure as rising equity markets typically lead to lower demand for volatility-linked hedging products.
- Cooling inflation data has further eased market anxiety, contributing to the decline in VIX futures and related instruments.