VIX Tumbles to Pre-War Level as Markets Rally on Ceasefire

The Cboe Volatility Index, a gauge of expected stock-market turbulence over the next month, tumbled after President Donald Trump agreed to a temporary ceasefire in his war against Iran.

The index, known as the VIX, slid 5.6 points to 20.18, the lowest since Feb. 27, before the US started its attacks. If sustained, that would mark the biggest one-day drop since Trump paused his tariff rollout a year ago after it unleashed havoc in global markets.

The president’s decision to pull back from his threat Tuesday to significantly escalate the war was met with similar relief, with stock futures ...