Nasdaq Dips Over 300 Points, Volatility In Markets Increases

U.S. stocks closed sharply lower on Thursday, as investors were worried over the Federal Reserve's aggressive policy stance, raising recession concerns for the US economy.

The Down is down over 8% this month, while the S&P 500 tumbled to its lowest level last seen in November 2020.

Shares of tech heavyweights, including Apple Inc AAPL and NVIDIA Corporation NVDA tumbled over 4% on Thursday.

On the economic data front, US initial jobless claims declined by 16,000 to 193,000 in the week ended September 24, recording the lowest since the end of April, while the US economy shrank an annualized 0.6% on quarter in the second quarter.

The Nasdaq 100 fell 2.86% to close at 11,164.78 on Thursday, while the S&P 500 declined 2.11%. The Dow Jones dipped around 458 points to settle at 29,225.61 in the previous session.

All the major sectors on the S&P 500 closed on a lower note, with utilities and consumer discretionary stocks recording the biggest plunge on Thursday.

The Chicago Board Options Exchange's CBOE Volatility Index (VIX) rose 5.5% to 31.84 points on Thursday.

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.