Market Volatility Increases Ahead Of US Inflation Data

U.S. stocks closed higher on Monday, ahead of the much-awaited inflation data for August.

Markets are expecting data to show easing in US inflation. Analysts expect annual inflation falling to an 8.1% rate in August, compared to 8.5% in July. Core CPI, however, might show an increase of 6.1% compared to 5.9% in July.

Majority of the traders are still expecting a 75 basis point rate hike at the Fed’s next meeting.

Shares of Oracle Corporation ORCL rose slightly in after-hours trading on Monday after reporting results for its first quarter.

The Nasdaq 100 jumped 1.20% to close at 12,739.72 on Monday, while the S&P 500 rose 1.06%. The Dow Jones jumped around 230 points to settle at 32,381.34 in the previous session.

All the major sectors on the S&P 500 closed on a positive note, with energy and information technology stocks recording the biggest surge on Monday.

The Chicago Board Options Exchange's CBOE Volatility Index (VIX) rose 3.7% to 23.64 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.