--- title: Why Stock Market Volatility Has Risen 85% Since Trump's Inauguration description: Market volatility is surging as uncertainty continues to be a theme in 2025. With Trump wavering on tariffs, there's little clarity in site. authors: - name: Jordan Chussler role: Editor, Investing and Banking url: https://money.com/author/jordan-chussler/ bio: Jordan is an investment editor and CPFC who specializes in traditional equities, gold and other precious metals, retirement savings and income investing. He combines his personal and professional interests in finance and education to help readers increase their financial literacy and make better investment choices. education: Lynn University certifications: Certified Personal Finance Counselor at_money_since: 2023 articles: 130 covers: - Investing - Banking - Credit - Credit Cards - Economy and Politics - Housing - Identity Theft - Insurance - Loans - Mortgages - Personal Finance - Professional Services - Retirement also_seen_in: - Weiss Ratings - 24/7 Wall Street - Better Investing - Yahoo Finance - Nasdaq - Investing.com - Marketbeat - MSN Money social: - https://www.linkedin.com/in/jordan-chussler-b3597811/ editors: - name: Katherine Peach role: Associate Editor url: https://money.com/author/katherine-peach/ bio: Katherine Peach is an associate editor with a focus on news and email at Money. She didn’t always intend to write about money. She’s a classically trained pianist who dreamed of becoming an archaeologist. However, in 2007 Katherine began working in financial publishing as an editor for Agora Inc. (Apparently, unearthing ideas about improving your personal finances isn’t such a bad career alternative!) Katherine’s writing and editing work has been featured in Investing Daily, Clever, Investor Junkie, The Palm Beach Letter, Truth & Plenty, Independence Monthly, NICHE, AmericanStyle, AntiqueWeek, Millennial Money, Money Done Right, TheStreet, Sure Dividend and many others. Katherine holds a Bachelor of Arts in Ancient Studies with concentrations in Archaeology and Ancient Languages and a minor in Literature from the University of Maryland, Baltimore County. She is a member of Phi Beta Kappa. education: University of Maryland, Baltimore County at_money_since: 2025 articles: 14 covers: - Investing - Banking - Career Advice - Credit - Credit Cards - Debt - Economy and Politics - Education - Federal Reserve Rate Cuts - Health and Wellness - Housing - Identity Theft - Insurance - Lifestyle - Loans - Mortgages - Personal Finance - Professional Services - Retirement - Shopping - Taxes published: '2025-03-11T19:51:46.000Z' modified: '2025-03-11T19:51:46.000Z' section: Investing tags: - News word_count: 594 canonical: https://money.com/stock-market-volatility-rising-trump/ type: NewsArticle source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![Traffic sign post, with two stock market arrows, one ascending and one descending, indicating a volatile stock market](https://img.money.com/2025/03/News-2025-Market-Volatility.png) Wall Street's so-called fear index is surging, contributing to ongoing uncertainty about the state of the stock market. The Chicago Board Options Exchange's CBOE Volatility Index (VIX) is a measure of the market's expected volatility based on [S&P 500](https://money.com/what-is-the-sp-500-index/) options. Over the past six months, the VIX has nearly doubled from a low of 12.77 on Dec. 6 to its current reading of 27.86. For context, that represents the highest reading since last summer's market downturn when the VIX registered 38.57 on Aug. 23. Zooming out, on the five-year VIX chart, volatility has now reached its highest level since Oct. 21, 2022, when it registered 29.69 at the tail end of the last bear market. Since President Donald Trump assumed office in January, market volatility — as measured by the VIX — has risen nearly 85%. ## SoFi® is for everyone, including new and seasoned investors ### With SoFi®, you can build a balanced portfolio and trade stocks, ETFs and options as frequently as you want, commission-free. Click your state to start investing today! [Start Investing](https://money.com/pr/kaca5eee7c9d?ap_referrer=%2Fstock-market-volatility-rising-trump%2F) INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE. Brokerage and Active investing products offered through SoFi Securities LLC, member FINRA / SIPC. ## Factors fueling volatility The surge in the VIX can be attributed to several factors. Softening economic data — such as a weaker-than-expected February jobs report, unemployment claims rising to their highest level since October 2024 and cooling consumer confidence — has contributed to uncertainty and, in turn, a rise in volatility. Tariffs and lingering inflation are additional layers, with the president's back-and-forth declarations leaving the market in limbo. At its January meeting, the Federal Reserve paused its [interest rate cuts](https://money.com/no-fed-rate-cuts-in-2025-possible/), citing concerns about potential fallout from the tariffs and an uptick in inflation. For January, the Consumer Price Index (CPI) — which measures the year-over-year change in prices of goods and services — showed the rate of inflation rose 3.0%. February's CPI print is due to be released Wednesday. The central bank suggested it would hold rates steady and even entertain hiking rates if its 2% CPI target is threatened. Meanwhile, Trump has again delayed tariffs against Mexico and Canada, the U.S.'s two largest trade partners, further fueling uncertainty. The lack of economic clarity has sparked fears of a recession after the Federal Reserve Bank of Atlanta last adjusted its [gross domestic product forecast](https://www.atlantafed.org/cqer/research/gdpnow) for the first quarter of 2025. The downward revision saw the bank's estimate fall from nearly 4% expansion in late January to a contraction of 2–3% this week. ## Stock market fallout The jump in volatility has sent the major indices spiraling, with sell-offs beginning in late February. At the time of writing: - The Dow Jones Industrial Average is deep into a pullback, having lost 7.30% since its six-month high Dec. 4 - The S&P 500 is on the verge of a correction, having lost 8.41% since its year-to-date high on Feb. 19 - The Nasdaq has officially entered a correction, having lost 12.58% since its six-month high on Dec. 16 This has resulted in a leap in [bearish investor sentiment](https://money.com/stock-market-outlook-plunges-as-investors-tariff-fears-grow/). The American Association of Individual Investors (AAII) [Sentiment Survey](https://www.aaii.com/sentiment-survey) for the week ending Feb. 26 showed bearishness at 60.6% — the highest reading since the survey registered 60.81% on Sept. 29, 2022. That negative sentiment carried over into March, with the first AAII survey of the month evidencing still-high bearishness of 57.1%. Compounding investor fears is a notable rotation out of cyclical and growth positions and into defensive positions. Over the past month, the consumer staples sector leads all 11 S&P 500 sectors by a sizable margin, posting a 3.56% gain. 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