Volatility In Markets Rises Further After US Stocks Extend Last Week's Losses

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.

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