Volatility Drops as Investor Confidence Rises: VIX Plunges to 14.43 in August 2025

As of today, August 30, 2025, the Cboe Volatility Index, known as the VIX, is recording a sale price of 14.43. This reflects a decrease from the last reported figure of 14.85, marking a percent change of approximately -2.83 percent from the previous trading day. The data is based on current real-time reporting from YCharts, which monitors VIX trends and historical changes.

The VIX, often referred to as the "investor fear gauge," measures market expectations of volatility over the next 30 days using S&P 500 index option prices. A drop like the one seen today typically signals increased investor confidence or a reduction in near-term market uncertainty. Factors underlying the recent percent change in the VIX include relative calm in S&P 500 option prices, limited news-driven volatility, and stable macroeconomic indicators through August.

Looking at the VIX’s recent trajectory, it has declined both day-over-day and year-over-year. On this date last year, the VIX stood at 17.11, emphasizing a broader cooling trend in market volatility. Analysts attribute the ongoing trend to a period of relatively subdued market swings, strong earnings reports from major companies, and a lack of major geopolitical or economic shocks this summer. However, the VIX is known for rapid changes should conditions shift, especially around key policy announcements or unexpected global events.

Trading Economics and the United States Federal Reserve confirm that the VIX averaged around 14.85 for August 2025, which further supports the current reading and highlights the overall decline in volatility compared to periods of recent market stress or uncertainty.

Investors use the VIX both as a barometer of short-term market sentiment and as a risk management tool. Low VIX levels can signal complacency, while sharp upward movements are often associated with accelerated market sell-offs or external shocks.

Thank you for tuning in for this update on the Cboe Volatility Index and its implications. Come back next week for more insight and analysis. This has been a Quiet Please production, and for more, check out QuietPlease.ai.

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