Market Volatility Increases; S&P 500 Settles Higher After Economic Reports

The S&P 500 settled at its highest level in fourteen months on Thursday as investors assessed economic data.

Retail sales in the U.S. increased 0.3% month-over-month in May, topping market expectations for a 0.1% drop. U.S. jobless claims came in unchanged at 262,000 in the week ending June 10, versus the previous week’s revised value. Export prices in the U.S. fell 1.9% month-over-month in May, while import prices fell 0.6% during the month.

The Federal Reserve left rates unchanged at the 5%-5.25% range on Wednesday. Traders now see a 67% chance that the central bank will raise rates by 25 basis points in July.

The Kroger Co. KR posted better-than-expected earnings for its first quarter, while sales missed estimates.

All the major sectors on the S&P 500 closed on a positive note, with health care, communication services and industrials stocks recording the biggest gains on Thursday.

The Nasdaq 100 rose 1.20% to close at 15,185.48 on Thursday, amid gains in shares of Apple Inc AAPL and Microsoft Corp MSFT.

The S&P 500 rose 1.22%, while the Dow Jones gained 1.26% to 34,408.06 in the previous session.

The Chicago Board Options Exchange's CBOE Volatility Index (VIX) rose 4.5% to close at 14.50 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.