Market Volatility Rises Sharply Following PPI Data

The S&P 500 closed sharply lower on Thursday after strong inflation report and a decline in weekly jobless claims added to concerns that the Fed will continue to increase rates.

US producer prices rose 0.7% month-over-month in January, the most in seven months and also above market estimates of 0.4%. Jobless claims also unexpectedly dropped last week.

Cisco Systems Inc CSCO shares gained 5.2% on Thursday after the company reported better-than-expected Q2 results and issued strong Q3 guidance.

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

The Nasdaq 100 dipped 1.93% to close at 12,442.48 on Thursday, amid losses in shares of Tesla Inc TSLA and Amazon.com, Inc. AMZN.

The S&P 500 fell 1.38%, while the Dow Jones lost 1.26% to 33,696.85 in the previous session. After recording losses in 2022, the S&P 500 has added around 7% year-to-date.

The Chicago Board Options Exchange's CBOE Volatility Index (VIX) jumped 10.6% to 20.17 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.

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