Dow Rises Over 300 Points As Market Volatility Decreases

U.S. stocks closed higher, extending Monday’s rally following upbeat earnings results and strong factory data.

Goldman Sachs Group Inc GS, Johnson & Johnson JNJ and Lockheed Martin LMT reported upbeat quarterly earnings on Tuesday. Industrial production in the US, meanwhile, rose 0.4% from a month ago in September versus a revised 0.1% decline in August and above analysts’ estimates of a 0.1% growth.

The Nasdaq 100 climbed 0.8% to close at 11,147.74 on Tuesday amid a decline in Amazon.com, Inc. AMZN shares, while the S&P 500 rose 1.14%. The Dow Jones climbed around 338 points to settle at 30,523.80 in the previous session.

All the major sectors on the S&P 500 closed on a positive note, with industrials and materials stocks recording the biggest surge on Monday.

The Chicago Board Options Exchange's CBOE Volatility Index (VIX) fell 1.4% to 30.92 points.

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.