Market Volatility Drops; S&P 500 Settles Higher Following Economic Reports

The S&P 500 settled higher on Tuesday, as investors assessed the recent economic reports.

Sales of new single-family houses in the U.S. surged 12.2% month-over-month to an annualised rate of 763,000 in May. U.S. durable goods orders rose 1.7% month-over-month in May versus a revised 1.2% growth in April and easily topping market estimates of a 1% drop.

Traders are seeing around 77% chance that the Federal Reserve will increase interest rates by 25 bps in its July meeting.

Meta Platforms, Inc. META shares gained over 3% on Tuesday after Citigroup raised its price target on the stock from $315 to $360.

Majority of sectors on the S&P 500 closed on a positive note, with information technology and consumer discretionary stocks recording the biggest gains on Tuesday. However, health care stocks bucked the overall market trend, closing lower during the session.

The Nasdaq 100 jumped 1.75% to close at 14,945.91 on Tuesday, amid gains in shares of NVIDIA Corp NVDA and Tesla Inc TSLA.

The S&P 500 rose 1.15%, while the Dow Jones gained 0.63% to 33,926.74 in the previous session.

The Chicago Board Options Exchange's CBOE Volatility Index (VIX) fell 3.6% to close at 13.74 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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