Market Volatility Decreases As US Stocks Open Q4 On Positive Note

Market Volatility Decreases As US Stocks Open Q4 On Positive Note

U.S. stocks closed higher on the first trading session of the fourth quarter, after recording a sharp sell-off in September.

Economic data released Monday showed a slowdown in manufacturing activity. U.S. manufacturing activity increased at its slowest pace in around 2-1/2 years during September, which is expected to impact the Federal Reserve’s aggressive rate-hiking strategy.

Shares of Apple Inc. AAPL, Amazon.com, Inc. AMZN and Meta Platforms, Inc. META, all traded higher on Monday.

The Nasdaq 100 jumped 2.36% to close at 11,229.73 on Monday, while the S&P 500 rose 2.59%. The Dow Jones surged around 765 points to settle at 29,490.89 in the previous session.

All the major sectors on the S&P 500 closed on a positive note, with energy stocks recording the biggest surge on Monday.

The Chicago Board Options Exchange's CBOE Volatility Index (VIX) fell 6.7% to 29.50 points.

What is CBOE Volatility Index?

The CBOE Volatility Index, popularly known as VIX, is a measure of the equity market's expectation of volatility based on S&P 500 index call and put options.

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