NEW YORK, Jan 20 (Reuters) - Volatility measures across asset classes rose on Tuesday as stocks, U.S. long-dated Treasuries, and the U.S. dollar sold off sharply after President Donald Trump threatened to rekindle a trade war with Europe.
On Monday, Trump’s renewed tariff threats against European allies prompted a repeat of the so-called “Sell America” trade that emerged following last year’s “Liberation Day” tariff announcement in April, with investors shying away from U.S. assets.
Wall Street’s most-watched gauge of investor anxiety, the Cboe Volatility Index .VIX, jumped as much as 1.9 points to an eight-week high of 20.69. The options-based index was last up 0.28 points to 19.12. The S&P 500 Index .SPX was down 1.1% at 6,859.
“We’ve certainly seen a meaningful reaction in the risk metrics, since Friday ... it’s a very significant shift,” said Jim Carroll, senior wealth adviser and portfolio manager at Ballast Rock Private Wealth in Charleston, South Carolina.
“But it’s not, you know, hair on fire, kind of reaction at this point,” he said.
