S&P 500 Rises 1% Following Fed Decision, Market Volatility Falls Sharply

The S&P 500 and the Nasdaq closed sharply higher on Wednesday following comments from Federal Reserve chair Jerome Powell.

The Fed on Wednesday raised its benchmark rate by 0.25%, marking the central bank's second consecutive policy downshift.

On the economic data front, the S&P Global US Manufacturing PMI was revised higher to 46.9 in January from a preliminary reading of 46.8, while private businesses in the US added 106,000 jobs in January.

Meta Platforms, Inc. META shares rose sharply in pre-market trading after the company reported better-than-expected sales for its fourth quarter and announced a $40 billion increase in its buyback authorization.

Majority of the sectors on the S&P 500 closed on a positive note, with information technology and consumer discretionary stocks recording the biggest surge on Wednesday. However, energy stocks bucked the overall market trend, dropping around 1.9% during the session.

The Nasdaq 100 jumped 2.16% to close at 12,363.10 on Wednesday, amid gains in shares of Microsoft Corp MSFT and Tesla Inc TSLA.

The S&P 500 gained 1.05%, while the Dow Jones gained 0.02% to 34,092.96 in the previous session.

The Chicago Board Options Exchange's CBOE Volatility Index (VIX) fell 7.9% to 17.87 points on Wednesday.

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.

Read Next: 5 Most Expensive Materials Stocks You Should Worry About

Market News and Data brought to you by Benzinga APIs
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsNewsPre-Market OutlookMarketsTrading IdeasCBOE Volatility Index
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!