Investors were feeling a little calmer on Wednesday as news of a summit between the U.S. and China boosted hopes that the world’s two largest economies will find a way to de-escalate their trade war.
The Cboe Volatility Index, a widely-followed Wall Street fear gauge that tracks S&P 500 options contracts and trades under the ticker VIX, slid 1.7% to just over 24 in early trading. Any reading of above 20 is typically seen as a sign of relatively high volatility.
The VIX was sliding after the U.S. said that Treasury Secretary Scott Bessent would meet with Chinese officials in Geneva, Switzerland. It’s set to be the first meeting between Washington and Beijing since President Donald Trump’s “Liberation Day” tariffs took effect last month.