Volatility In Markets Decreases After Dow Surges Over 400 Points

U.S. stocks surged the most in around one month amid easing in bond yields on Wednesday.

The tech-laden Nasdaq index led gains on Wednesday, after recording losses for seven straight sessions. Investors also ignored hawkish comments by Fed officials on Wednesday.

The 10-year Treasury yield fell from the three-month high level recorded earlier during the session, which provided boost to shares including, Microsoft Corp MSFT, Tesla Inc TSLA and Amazon.com Inc AMZN.

The Nasdaq 100 jumped 2.07% to close at 12,259.39 on Wednesday, while the S&P 500 rose 1.83%. The Dow Jones jumped around 436 points to settle at 31,581.28 in the previous session.

Majority of the sectors on the S&P 500 closed on a positive note, with consumer discretionary and utilities stocks recording the biggest surge on Wednesday. Energy, however, was the worst performing sector, dropping around 1.2% in the previous session.

The Chicago Board Options Exchange's CBOE Volatility Index (VIX) dipped 8.4% to close at 24.64 points 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.