U.S. stocks dropped on Monday, adding to previous week’s losses after Fed Chair Jerome Powell said the central bank will remain aggressive in its monetary policy stance to fight inflation.
High-growth tech shares moved lower, with shares of Apple Inc AAPL dropping around 1.4%, while Microsoft Corporation MSFT fell about 1.1% in the previous session.
The Nasdaq 100 fell 0.96% to close at 12,484.32 on Monday, while the S&P 500 fell 0.67%. The Dow Jones tumbled around 184 points to settle at 32,098.99 in the previous session.
Majority of the sectors on the S&P 500 closed on a lower note, with information technology and communication services stocks recording the biggest plunge on Monday. Energy stocks, however, bucked the overall market trend, gaining around 1.5% in the prior session.
The Chicago Board Options Exchange’s CBOE Volatility Index (VIX) rose 2.5% to 26.21 points on Monday, hitting a seven-week high during the session.
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.