S&P 500 Settles Lower, Market Volatility Rises

The S&P 500 closed lower on Wednesday, as weak economic data raised recession concerns.

Private businesses in the U.S. added 145,000 jobs in March versus a revised 261,000 in February and compared to expectations of 200,000, the ADP said. The Institute for Supply Management said that its non-manufacturing PMI dropped to 51.2 in March from 55.1 in February.

FedEx Corporation FDX shares gained 1.5% on Wednesday after the company announced that it will consolidate its operating companies into one organization. The company also announced a 10% dividend increase.

Big banks, including Citigroup Inc. C and JPMorgan Chase & Co JPM are scheduled to report earnings next week.

Major sectors on the S&P 500 closed on a negative note, with consumer discretionary and industrials stocks recording the biggest losses on Wednesday. However, health care and utilities stocks settled higher during the session.

The Nasdaq 100 dipped 1.01% to close at 12,967.20 on Wednesday, amid losses in shares of Amazon.com, Inc. AMZN and Apple Inc AAPL.

The S&P 500 fell 0.25%, while the Dow Jones added 0.24% to 33,482.72 in the previous session.

The Chicago Board Options Exchange's CBOE Volatility Index (VIX) rose 0.4% to 19.08 points on Wednesday.

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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