The ProShares Ultra VIX Short-Term Futures ETF (UVXY) experienced a dramatic surge of 21.18% during intraday trading on Friday, as investors rushed to hedge against market volatility. UVXY, which aims to provide 1.5x leveraged exposure to an index of VIX short-term futures contracts, saw its value climb rapidly in response to a sudden spike in market fear.

The catalyst for this sharp movement was a significant jump in the CBOE Volatility Index (VIX), often referred to as Wall Street's "fear gauge." The VIX briefly soared by 52% to 45.56, reaching its highest level since October 2020. This spike was triggered by China's announcement of retaliatory tariffs against the United States, reigniting concerns about an escalating trade war between the world's two largest economies.

The surge in volatility wasn't limited to UVXY alone. Other volatility-linked ETFs also saw substantial gains in morning trading. The 2x Long VIX Futures ETF (UVIX) rose 19%, while the ProShares VIX Short-Term Futures ETF (VIXY) and the iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) both increased by 10%. The iPath Series B S&P 500 VIX Mid-Term Futures ETN (VXZ) saw a more modest gain of 2%. These movements underscore the broader market's quick reaction to the sudden increase in geopolitical tensions and the resulting uncertainty in global trade relations.