The most widely-followed gauge of market fear and uncertainty was climbing on Tuesday after comments from President Donald Trump appeared to dash investors’ hopes that Iran and Israel will be able to broker a cease-fire deal.
The Cboe Volatility Index, or VIX, rose by just under 1.5 points to more than 20 in early trading. Any reading of above that level tends to indicate relatively high volatility, so the latest move is a sign that investors are feeling on edge.
Trump told people to evacuate Tehran in a Truth Social post late Monday, fueling fears that the Iran-Israel conflict could escalate. The president left the G-7 summit in Canada early, but he said in a follow-up post that his return to Washington wasn’t related to a cease-fire deal, adding that his reasons were “much bigger than that.”