S&P 500 Jumps 1.5%, Market Volatility Decreases

US stocks closed higher on Tuesday following the release of several earnings reports.

Caterpillar Inc. CAT shares fell 3.5% on Tuesday after the company reported worse-than-expected Q4 adjusted EPS results. Pfizer Inc. PFE shares rose 1.4% after the company reported upbeat quarterly earnings but issued FY23 guidance below estimates.

The US Federal Reserve is expected to announce interest rate decision today, with markets expecting the central bank to increase rates by 25 bps.

Majority of the sectors on the S&P 500 closed on a positive note, with materials and consumer discretionary stocks recording the biggest surge on Tuesday.

The Nasdaq 100 jumped 1.59% to close at 12,101.93 on Tuesday, amid gains in shares of Amazon.com, Inc. AMZN and Tesla Inc TSLA.

The S&P 500 gained 1.46%, while the Dow Jones gained 1.09% to 34,086.04 in the previous session.

The Chicago Board Options Exchange's CBOE Volatility Index (VIX) fell 2.7% to 19.40 points 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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