Categories: Market News

Navigating the Storm: S&P 500 Records Gain as Market Volatility Skyrockets

The S&P 500 and Nasdaq attained their highest closing levels since April 2022 on Monday.

Investors are waiting eagerly for the inflation report and the Federal Reserve’s decision on interest rates. Traders are forecasting that the Federal Reserve will not change the interest rates during their upcoming meeting on June 13-14, with a probability of 72%. All the information related to the consumer price index will be exposed today.

On Monday, the value of Nasdaq, Inc. stocks, identified as NASDAQ: NDAQ, decreased by about 12% following the news of a $10.5 billion acquisition deal of Adenza, which will be paid for with a mix of cash and stock.

News emerged on Monday that the European Union antitrust regulators may give the green light for Broadcom Inc., a NASDAQ-listed company under the symbol AVGO, to acquire VMware, an NYSE-listed company under the symbol VMW, for a sum of $61 billion. This development caused a surge of over 6% in Broadcom Inc.’s stock value.

On Monday, many of the industries included in the S&P 500 had a favorable result, particularly the consumer discretionary and information technology sectors, which saw the biggest gains. However, the energy sector was an exception and closed the day in a less favorable position.

The Nasdaq 100 experienced a 1.76% surge on Monday, closing at 14,784.30, which can be attributed to the boost in Amazon.com, Inc. (NASDAQ: AMZN) and Tesla Inc (NASDAQ: TSLA) shares.

During the previous trading session, there was a rise of 0.93% in the S&P 500 and a climb of 0.56% in the Dow Jones, resulting in a value of 34,066.33.

The Chicago Board Options Exchange’s CBOE Volatility Index (VIX) rose by 8.5% on Monday, ultimately reaching a value of 15.01.

What is CBOE Volatility Index?

The VIX is a well-known measure of potential fluctuations in the stock market and is abbreviated from the CBOE Volatility Index. The computation of this index involves the use of call and put options related to the S&P 500 index.

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