Market Volatility Declines Following Strong Bank Earnings; S&P 500 Settles Higher

The S&P 500 closed higher on Tuesday, following solid bank earnings.

Bank of America BAC reported stronger-than-expected quarterly profit, while Morgan Stanley MS also topped market expectations. Bank of New York Mellon BK also reported better-than-expected second-quarter financial results.

The Dow notched gains for the seventh straight session and settled at its strongest level since April 2022.

Major companies, including, < Tesla Inc TSLA, Goldman Sachs Group Inc GS and Netflix Inc NFLX are scheduled to release earnings today.

Majority of sectors on the S&P 500 closed on a positive note, with information technology and financials stocks recording the biggest gains on Tuesday. However, utilities and real estate stocks, bucked the overall market trend, closing lower during the Tuesday’s session.

The Nasdaq 100 gained 0.82% to close at 15,841.35 on Tuesday, amid gains in shares of Netflix Inc NFLX and Tesla Inc TSLA.

The S&P 500 rose 0.71%, while the Dow Jones gained 1.06% to 34,951.93 in the previous session.

The Chicago Board Options Exchange's CBOE Volatility Index (VIX) fell 1.3% to close at 13.30 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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