Post #15697

Tariff Fears Spark Volatility, Then Cool as Markets Stabilize Volatility picked up sharply after fresh tariff threats from Trump reignited trade-war fears with Europe, triggering a brief “Sell America” move across stocks, the dollar, and long-dated Treasuries. Risk metrics jumped, with the VIX spiking as much as 9% and briefly trading above its 200-day moving average, while the dollar slipped and equity markets sold off. After the market open, the tone shifted. The Supreme Court declined to rule on Trump’s tariffs, pushing any decision out to at least late February. With no immediate legal shock, risk-off flows began to unwind. The VIX faded back to flat on the day, stocks rebounded, and the S&P 500 found support at its 50-day moving average — suggesting markets are settling, for now, as the tariff overhang moves into a waiting game. - Alan