Market Volatility Drops Ahead Of Fed's Decision; S&P 500 Settles Higher

The S&P 500 closed higher on Tuesday after data showed consumer prices increased modestly during the month of May.

The consumer price inflation in the U.S. eased to 4.0% in May, recording the lowest level since March 2021 and compared to market estimates of 4.1%. On a monthly basis, consumer prices rose 0.1% in May after increasing 0.4% in the previous month.

Investors are awaiting the Fed’s interest rate decision on Wednesday, with majority of traders expecting the Fed to hold interest rates.

Intel Corporation INTC shares rose 2.5% on Tuesday on reports the company is in talks to be a potential anchor investor in Arm's IPO.

Majority of sectors on the S&P 500 closed on a positive note, with materials and industrials stocks recording the biggest gains on Tuesday. However, utilities stocks bucked the overall market trend, closing slightly lower during the session.

The Nasdaq 100 rose 0.79% to close at 14,900.85 on Tuesday, amid gains in shares of NVIDIA Corp NVDA and Tesla Inc TSLA.

The S&P 500 rose 0.69%, while the Dow Jones rose 0.43% to 34,212.12 in the previous session.

The Chicago Board Options Exchange's CBOE Volatility Index (VIX) fell 2.7% to close at 14.61 on Tuesday.
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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