Market Volatility Increases Sharply As Banks Remain Under Pressure

The S&P 500 settled lower on Monday, as investors remained concerned about contagion from the collapse of SVB Financial Group SIVB.

Investors will keep an eye on the CPI data, due today, and PPI data, due on Wednesday. The Federal Reserve is set to announce its policy decision next week, with traders largely expecting a 25 basis point rate increase from the central bank.

Major sectors on the S&P 500 closed on a mixed note, with real estate and utilities stocks recording the biggest gains on Monday. However, energy and financials stocks closed sharply lower during the session.

The Nasdaq 100 rose 0.79% to close at 11,923.17 on Monday, amid gains in shares of Apple Inc AAPL and Amazon.com, Inc. AMZN.

The S&P 500 fell 0.15%, while the Dow Jones lost 0.28% to 31,819.14 in the previous session.

The Chicago Board Options Exchange's CBOE Volatility Index (VIX) jumped 9.2% to 27.09 points on Monday, after earlier hitting 30.81, its highest level since late October.

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.

Read Next: ThredUp And 2 Other Penny Stocks Insiders Are Aggressively Buying