The Cboe Volatility index on Wednesday was near its lowest level since mid January as U.S. stock benchmarks mostly climbed near fresh all-time highs, shaking off tariff fears. The so-called fear index was, or VIX VIX, -2.65% was down 3.1% at 10.58 in Wednesday afternoon trade, which puts the index at its lowest level since Jan. 12, if it holds that level through the close, according to FactSet data. The VIX reflects S&P 500 SPX, -0.03% bullish and bearish options contracts to calculate expectations for volatility over the coming 30 days, and it tends to fall as stocks rise. The fear gauge's historical average is between 19 and 20. Most recently, the S&P 500 was less than 1% from its Jan. 26 record, with the Nasdaq Composite Index COMP, +0.06% also within shouting distance of its recent all-time peak. Meanwhile, the Dow Jones Industrial Average DJIA, -0.18% lagged behind its peers, and was trading about 0.1% lower at 25,599. U.S. equity markets have mostly cast off worries about escalating tensions between the U.S. and China over tariffs and focused on solid earnings and economic data. Thus far, that atmosphere has helped to push stocks to new heights after the S&P 500 and the Dow both fell into correction territory on Feb. 8, defined as a drop of at least 10% from a recent peak.
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