Market Volatility Decreases As US Stocks Extend Gains

U.S. stocks closed higher on Tuesday, extending recent session’s gains. All three major stock indices recorded gains for the third session in a row.

After the closing bell on Tuesday, shares of Microsoft Corporation MSFT and Alphabet Inc GOOG dropped around 6.7% each following the release of quarterly earnings.

The Nasdaq 100 jumped 2.10% to close at 11,669.99 on Tuesday amid gains in Apple Inc AAPL and Microsoft Corporation MSFT shares, while the S&P 500 surged 1.63%. The Dow Jones jumped around 337 points to settle at 31,836.74 in the previous session.

Investors are awaiting earnings results from The Boeing Company BA, Meta Platforms, Inc. META, Ford Motor Company F, and General Dynamics Corporation GD.

Majority of the sectors on the S&P 500 closed on a positive note, with real estate and materials stocks recording the biggest surge on Tuesday. However, energy stocks bucked the overall market trend, falling around 0.1% in the previous session.

The Chicago Board Options Exchange's CBOE Volatility Index (VIX) fell 4.7% to 28.46 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.