U.S. stocks fell deeper into a bear market, as investors remained concerned that the Federal Reserve’s aggressive fight against inflation might result in a sharp downturn for the U.S. economy.
The Dow Jones is now down around 20.5% from its record high settlement level on January 4, confirming bear market for the 30-stock index.
Shares of big tech companies, including, NVIDIA Corporation (NASDAQ:NVDA) and Meta Platforms, Inc. (NASDAQ:META) also settled lower on Monday.
The Nasdaq 100 fell 0.51% to close at 11,254.11 on Monday, while the S&P 500 fell 1.03%. The Dow dipped around 330 points to settle at 29,260.81 in the previous session.
Majority of the sectors on the S&P 500 closed on a lower note, with real estate and energy stocks recording the biggest decline on Monday. However, consumer staples stocks rose slightly in the previous session.
The Chicago Board Options Exchange’s CBOE Volatility Index (VIX) gained 2.8% to 30.75 points, hovered close to three-month highs.
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.
