Market Volatility Increases After PPI Data; S&P 500 Settles Higher

U.S. stocks extended gains on Thursday, with the Nasdaq gaining over 1% for a second session in a row.

Producer prices for final demand in the U.S. rose 0.1% month-over-month in June, compared to market expectations of a 0.2% increase. U.S. initial jobless claims, meanwhile, declined by 12,000 from the previous week to 237,000 in the week ending July 8, compared to market estimates of 250,000.

Big banks, including JPMorgan Chase & Co. JPM, Citigroup Inc. C and Wells Fargo & Company WFC will release earnings on Friday.

PepsiCo, Inc. PEP shares gained 2.4% on Thursday after the company increased its annual revenue and profit guidance.

Majority of sectors on the S&P 500 closed on a positive note, with communication services and information technology stocks recording the biggest gains on Thursday. However, energy and health care stocks closed lower during the Thursday’s session.

The Nasdaq 100 rose 1.73% to close at 15,571.98 on Thursday, amid gains in shares of Amazon.com, Inc. AMZN and Alphabet Inc. GOOGL.

The S&P 500 rose 0.85%, while the Dow Jones gained 0.14% to 34,395.14 in the previous session.

The Chicago Board Options Exchange's CBOE Volatility Index (VIX) rose 0.5% to close at 13.61 on Thursday.

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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