S&P 500 Surges Over 1% On Debt Ceiling Resolution Hopes; Market Volatility Drops Sharply

The S&P 500 settled higher on Wednesday on hopes of a debt ceiling resolution.

Western Alliance Bancorporation WAL shares jumped over 10% on Wednesday after the company released an investor update showing deposit growth has climbed above $2 billion in the current quarter. The KBW regional bank jumped around 7.3% to settle at its strongest level since May 1.

The TJX Companies, Inc. TJX and Target Corporation TGT both reported better-than-expected quarterly earnings on Wednesday.

Majority of the sectors on S&P 500 closed on a positive note, with financial and energy stocks recording the biggest gains on Wednesday. However, utilities and consumer staples stocks bucked the overall market trend, closing lower during the session.

The Nasdaq 100 jumped 1.22% to close at 13,589.26 on Wednesday, amid gains in shares of Amazon.com, Inc. AMZN and Tesla Inc TSLA.

The S&P 500 added 1.19%, while the Dow Jones surged 1.24% to 33,420.77 in the previous session.

The Chicago Board Options Exchange's CBOE Volatility Index (VIX) fell 6.2% to close at 16.87 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.

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