Volatility Eases: VIX Declines Amid Stabilizing Market Conditions

The Cboe Volatility Index, known as the VIX, stands at a current sale price of 14.91 as of its latest close on December 19, 2025, according to FRED data from the St. Louis Fed updated December 22. This reflects a sharp percent change of negative 11.6 percent from the prior close of 16.87 on December 18, dropping from recent highs around 17.62 on December 17 as reported by Investing.com historical rates.

This decline signals easing market fears, with the VIXoften called the fear gaugepulling back after spiking amid holiday-season uncertainties. Cboe VIX Futures data shows front-month contracts at 23.52 with a 1.02 point drop, or down 4.2 percent, while near-term settlements like VX/Z5 for December 17 settled at 21.77, indicating futures markets pricing in moderated volatility ahead. Underlying factors include stabilizing U.S. equities post-Fed signals, as noted in Cboes Macro Volatility Digest, where implied volatilities eased after FOMC uncertainty but equity vols ticked up slightly on valuation concerns before retracing.

Trends show volatility choppy lately: from 16.48 on December 16 to 17.62 on December 17, then tumbling, per Investing.com and Perplexity Finance charts. Longer-term, VIX has fluctuated between 14 and 20 this month, with a notable 21.89 percent surge earlier tied to economic cooling fears, now reversing as markets rally into year-end. Cboe reports VIX futures reflecting 30-day S&P 500 implied volatility expectations, currently bending lower on reduced risk premiums.

Investors watch for jobs data and Fed paths, but this dip suggests calmer trading post-spike.

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