S&P Settles Lower After Fed Raises Rates; Market Volatility Increases Sharply

The S&P 500 closed lower on Wednesday after the Fed raised interest rates by a quarter of a percentage point.

Advanced Micro Devices, Inc. AMD shares dropped over 9% on Wednesday after the company issued Q2 revenue guidance with a midpoint below estimates and guided for a non-GAAP gross margin of 50%, representing flat sequential growth.

All the major sectors on the S&P 500 closed on a negative note, with energy and materials stocks recording the biggest losses on Wednesday.

The Nasdaq 100 fell 0.64% to close at 13,030.21 on Wednesday, amid losses in shares of Apple Inc AAPL and Microsoft Corp MSFT.

The S&P 500 fell 0.70%, while the Dow Jones lost 0.80% to 33,414.24 in the previous session.

The Chicago Board Options Exchange's CBOE Volatility Index (VIX) jumped 5.5% to close at 18.75 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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