The Nasdaq index closed sharply higher on Tuesday ahead of consumer prices data.
Data on US consumer prices will be released on Thursday, with analysts expecting some moderation in year-over-year prices for the month of December. Traders are expecting a 25-basis point rate increase at the Federal Reserve’s policy meeting in February.
Majority of the sectors on the S&P 500 closed on a positive note, with communication services and consumer discretionary stocks recording the biggest surge on Tuesday. However, consumer staples stocks bucked the overall market trend, moving lower during the session.
The Nasdaq 100 rose 0.88% to close at 11,205.78 on Tuesday, amid gains in shares of Microsoft Corporation (NASDAQ:MSFT) and Amazon.com, Inc. (NASDAQ:AMZN).
The S&P 500 rose 0.70%, while the Dow Jones gained 0.56% to 33,704.10 in the previous session.
The Chicago Board Options Exchange’s CBOE Volatility Index (VIX) fell 6.3% to 20.58 points on Tuesday.
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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