The ProShares Ultra VIX Short-Term Futures ETF (UVXY) soared 13.93% in pre-market trading on Friday, as investors braced for increased market volatility. This significant move comes in response to a sharp rise in the CBOE Volatility Index (VIX), often referred to as Wall Street's "fear gauge".

The spike in volatility is directly linked to President Trump's recent threat of imposing tariffs on Apple and the European Union. According to reports, the VIX jumped from 20.28 on Thursday to just under 25, reflecting growing concerns about potential trade tensions and their impact on the market. While this increase is notable, it remains well below the extreme levels seen earlier in the year when the VIX surpassed 50.

UVXY, which aims to deliver 1.5 times the daily performance of short-term VIX futures, is particularly sensitive to changes in market volatility expectations. As the VIX climbs, UVXY typically sees amplified gains, explaining its substantial pre-market rally. Investors should note that while such moves can be profitable during periods of market stress, volatility-linked products like UVXY can be highly risky and are often used as short-term trading vehicles rather than long-term investments.