It’s rare for the S&P 500 and the VIX to post gains on the same day. Here’s why it just happened.

Core Insights - The S&P 500 index has shown resilience, gaining 0.6% on both Monday and Tuesday despite rising geopolitical tensions following the U.S. operation against Venezuelan leader Nicolás Maduro [1] - The Cboe Volatility Index (VIX) increased by 2.7% on Monday, indicating that investors are preparing for potential market volatility even as stocks rise [2][4] Market Dynamics - A rising VIX during an up market is unusual and signals that the market is pricing in uncertainty, as noted by Joe Mazzola from Charles Schwab [3] - Historically, the VIX and S&P 500 have an inverse relationship, with only 28 occurrences in the last 10 years where both indexes posted gains simultaneously [3] Upcoming Events - Key upcoming events that could influence market volatility include a jobs report and labor market data, as well as a Supreme Court ruling on President Trump's tariffs [5] - The geopolitical situation, particularly the U.S. military operation in Venezuela, is also contributing to investor caution [5] Volatility Index Context - The VIX was near its lows at the end of 2025, making options relatively inexpensive for traders looking to hedge against market movements [6] - The current rise in the VIX may be attributed to traders taking advantage of low premiums for options, leading to increased buying activity [7]