Volatility In Markets Increases Amid US Midterm Elections

U.S. stocks settled higher on Tuesday amid voting in midterm elections, which will determine control of the Congress.

Wall Street recorded gains for the third straight session on Tuesday. Investors also await data on inflation, due this Thursday, which might show easing in US consumer prices.

Take-Two Interactive Software Inc TTWO dropped around 14% after the company lowered its annual sales forecast.

The Nasdaq 100 jumped 0.75% to close at 11,059.50 on Tuesday, amid gains in shares of Apple Inc. AAPL and Microsoft Corporation MSFT. The S&P 500 rose 0.56%, while the Dow Jones jumped around 334 points to settle at 33,160.83 in the previous session.

Majority of the sectors on the S&P 500 closed on a strong note, with materials and information technology stocks recording the biggest surge on Tuesday. However, Consumer Discretionary shares bucked the overall market trend, falling around 0.3% in the previous session.

The Chicago Board Options Exchange's CBOE Volatility Index (VIX) rose 4.2% to 25.36 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.