Volatility In Markets Increases Sharply Ahead Of Inflation Data, Fed's Rate Decision

US stocks closed sharply higher on Monday, ahead of the much-awaited inflation data and interest rate decision from the Federal Reserve.

Economists project the US central bank, and the European Central Bank and Bank of England to all increase interest rates by 50 basis points.

Shares of Oracle Corp ORCL gained more than 2% in Monday's after-hours session after the company reported better-than-expected quarterly results.

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

The Nasdaq 100 jumped 1.24% to close at 11,706.44 on Monday, amid a decline in shares of Apple Inc (NASDAQ: AAPL) and Amazon.com, Inc. AMZN. The S&P 500 gained 1.43%, while the Dow Jones added 1.58% to 34,005.04 in the previous session.

The Chicago Board Options Exchange's CBOE Volatility Index (VIX) jumped 10.7% to 25.28 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.