The Cboe Volatility index rallied for a fourth straight session on Friday, as fears over increased trade protectionism added to the uncertainty weighing on the U.S. stock market. The VIX rose 13% to 25.33, its highest level since Feb. 13, and extending the move back above its long-term average of 20. For the week, the so-called “fear index” is up more than 50%, bringing its year-to-date advance to nearly 130%. The VIX also spiked in early February, as concerns over the prospect of inflation returning to markets led to the first correction on Wall Street in two years. The Dow Jones Industrial Average fell 1.4% on Friday, while the S&P 500 was down 1% and the Nasdaq Composite Index lost 1.2%. The losses came a day after President Donald Trump announced the U.S. would impose tariffs on steel and aluminum imports and subsequently tweeted that “trade wars are good.”
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