US Stocks Record Worst Week Of 2023, Market Volatility Increases

US stocks closed lower on Friday, with the S&P 500 recording its biggest weekly decline of 2023.

The Dow Jones fell around 3% last week to record its biggest weekly drop since September. The blue-chip index also notched losses for the fourth straight week, its longest losing streak in around 10 months.

Data released Friday showed the personal consumption expenditures price index, the Federal Reserve’s preferred gauge for inflation, increasing 0.6% in January following a 0.2% rise in December.

Shares of Adobe Inc ADBE dropped 7.6% on Friday following a report suggesting the DOJ is preparing to block the company's $20 billion deal for Figma.

Majority of the sectors on the S&P 500 closed on a negative note, with information technology and real estate stocks recording the biggest plunge on Friday. However, material and financials bucked the overall market trend, closing higher during the session.

The Nasdaq 100 tumbled 1.73% to close at 11,969.65 on Friday, amid losses in shares of Amazon.com, Inc. AMZN and Tesla Inc TSLA.

The S&P 500 fell 1.05%, while the Dow Jones lost 1.02% to 32,816.92 in the previous session.

The Chicago Board Options Exchange's CBOE Volatility Index (VIX) rose 2.5% to 21.67 points on Friday.

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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