CBOE Volatility Index Settles At Highest Level Since November 18

US stocks closed mostly lower on Wednesday, with the S&P 500 and Nasdaq recording losses following a choppy trading session.

The benchmark S&P 500 fell for the fifth straight session, while the Nasdaq settled lower for the fourth consecutive time. The Dow, however, snapped a two-day losing streak.

Money markets now see a 91% chance that the US Federal Reserve will raise interest rates by 50 basis points at its upcoming meeting.

Markets now await economic data on jobless claims, producer price index and the University of Michigan's consumer sentiment index during the week.

Travel-related stocks, including, Delta Air Lines, Inc. DAL, American Airlines Group Inc. AAL, Carnival Corp CCL and Norwegian Cruise Line Holdings Ltd. NCLH, all settled lower on Wednesday.

Majority of the sectors on the S&P 500 closed on a negative note, with information technology and communication services stocks recording the biggest plunge on Wednesday. However, health care, consumer staples and real estate stocks bucked the overall market trend, recording gains in the prior session.

The Nasdaq 100 dropped 0.45% to close at 11,497.39 on Wednesday, amid a decline in shares of Apple Inc. AAPL and Tesla Inc TSLA. The S&P 500 fell 0.19%, while the Dow Jones settled almost flat at 33,597.92 in the previous session.

The Chicago Board Options Exchange's CBOE Volatility Index (VIX) gained 2.3% to 22.68 points on Wednesday, recording its highest settlement since November 18.

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.