Cboe – Insights

SPX Skew Steepens to 1Y High as Tariff Uncertainty Rises

Cboe’s Macro Volatility Digest shows SPX 1‑month options skew climbing to its highest level in a year. The steepening reflects heightened uncertainty from evolving U.S. tariff policy, geopolitical tensions and lingering AI concerns, while oil volatility spiked to 52%. Equity and rates implied volatilities fell after the Supreme Court struck down Trump’s emergency tariffs, yet small‑cap stocks outperformed the broader index, gaining 7% YTD. Dispersion expectations remain near pre‑earnings highs, indicating continued demand for single‑stock hedges.