Nvidia Earnings Loom as Semiconductor Implied Volatility Falls to Historic Low

Stocks finished higher but not by much, with the trading range being tight.

The 1-day VIX closed below 9, which probably won't stay that way for long given Nvidia's results tomorrow night.

Since 2022, it has been rare for the VIX 1-day to close at such low levels, indicating a likely expansion of implied volatility from here.

The semiconductor sector continues to see its implied volatility decline, with VXSMH dropping to 38.9, its lowest level since August 14 and January.