Implied volatilities decreased across various asset classes during the last week, signaling a rebound in risk assets. The SPX convexity premium, which is the difference between the VIX and the one-month ATM volatility of the S&P 500, contracted further, finishing the week at just 3.4 points.

This reduction suggests a growing sense of optimism among investors, particularly regarding tariff negotiations that have impacted market sentiment recently. As the situation develops, it will be important for investors to monitor changes in volatility and risk appetite, as these factors can significantly influence market movements.