U.S. stocks closed higher on Monday, as investors assessed impacts of downbeat economic data.
Data from S&P Global showed a contraction in business activity for the month of October, increasing prospects that the Federal Reserve could start slowing the pace of rate hikes.
Shares of Tesla (NASDAQ:TSLA) dropped 1.5% on Monday amid the company lowering the price of two vehicles in China.
The Nasdaq 100 jumped 1.06% to close at 11,430.26 on Monday amid gains in Apple Inc (NASDAQ:AAPL) and Microsoft Corporation (NASDAQ:MSFT) shares, while the S&P 500 surged 1.19%. The Dow Jones jumped around 417 points to settle at 31,499.62 in the previous session.
Investors are awaiting earnings results from General Motors Company (NYSE:GM), The Coca-Cola Company (NYSE:KO), General Electric Company (NYSE:GE), Microsoft Corporation (NASDAQ:MSFT) and Alphabet Inc. (NASDAQ:GOOG).
Majority of the sectors on the S&P 500 closed on a positive note, with health care and consumer staples stocks recording the biggest surge on Monday. However, materials stocks were among the worst performers, losing around 0.6% in the previous session.
The Chicago Board Options Exchange’s CBOE Volatility Index (VIX) rose 0.5% to 29.83 points.
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.
