S&P 500 Surges Over 2%, Market Volatility Declines

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The S&P 500 closed higher on Friday following the release of December payrolls data.

US nonfarm payrolls increased by 223,000 jobs for December, according to the recent Labor Department data. Average earnings increased 0.3% during the month, down from the previous month’s 0.4% growth.

The ISM services PMI declined to 49.6 in December, signalling the first contraction in the services activity since May 2020. The recent data showed signs of an easing economy, which could ease fears of aggressive future Fed policy.

Tesla, Inc. TSLA lowered the prices of its Model 3 and Y vehicles in China — its fourth downward price adjustment in the country since late October. Shares of the EV maker gained 2.5% on Friday.

All the major sectors on the S&P 500 closed on a positive note, with materials and information technology stocks recording the biggest surge on Friday.

The Nasdaq 100 rose 2.78% to close at 11,040.35 on Friday, amid losses in shares of AAPL and Amazon.com, Inc. AMZN.

The S&P 500 jumped 2.28%, while the Dow Jones gained 2.13% to 33,630.61 in the previous session.

The Chicago Board Options Exchange’s CBOE Volatility Index (VIX) fell 5.9% to 21.13 points on Friday.

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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