S&P 500 Rises For Second Straight Session; Market Volatility Falls

The S&P 500 settled higher for a second consecutive session on hopes of a debt ceiling resolution.

President Joe Biden has reportedly urged his negotiators to keep following a debt-limit deal after House Speaker Kevin McCarthy indicated both parties may reach an agreement as soon as this weekend.

On the economic data front, U.S. jobless claims dropped to 242 thousand in the week ending May 13, versus an 18-month high level of 264 thousand and compared to market estimates of 254 thousand.

Walmart Inc WMT reported better-than-expected results for its first quarter and raised full-year forecast, while Alibaba Group Holding Limited BABA reported upbeat earnings for its fourth quarter.

Majority of the sectors on S&P 500 closed on a positive note, with information technology and communication services stocks recording the biggest gains on Thursday. However, real estate and consumer staples stocks bucked the overall market trend, closing lower during the session.

The Nasdaq 100 jumped 1.81% to close at 13,834.62 on Thursday, amid gains in shares of Amazon.com, Inc. AMZN and Apple Inc AAPL.

The S&P 500 added 0.94%, while the Dow Jones surged 0.34% to 33,535.91 in the previous session.

The Chicago Board Options Exchange's CBOE Volatility Index (VIX) fell 4.9% to close at 16.05 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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