Investors were feeling on edge Thursday after officials in both the U.S. and China denied that the two countries are close to opening trade negotiations.
The Cboe Volatility Index, a widely-followed fear gauge that tracks S&P 500 options contracts and trades under the ticker VIX, climbed 2.5% to more than 29 in early trading. Any reading of above 20 is typically seen as an indicator of relatively high uncertainty.
On Thursday, Chinese officials denied reports that Washington and Beijing had opened trade talks. Treasury Secretary Scott Bessent had also previously signaled that representatives of the world’s two largest economies were yet to start tariff negotiations.