Market Volatility Increases Sharply Ahead Of Nonfarm Payrolls Data; S&P 500 Settles Lower

The S&P 500 settled lower on Thursday following the release of latest jobs data.

The S&P 500 recorded its biggest daily percentage decline since May 23, while the Dow Jones notched its biggest daily decline since May 2.

Private businesses in the U.S. added 497,000 jobs in June, the most since Feb. 2022, and higher than market estimates of 228,000. Investors are now awaiting the release of nonfarm payrolls data, due to be released today.

After the closing bell, Costco Wholesale Corporation (NASDAQ: COST) reported a 1.4% drop in total comparable sales for June. The company’s net sales rose 0.4% year-over-year to $22.86 billion for the retail month of June.

All the major sectors on the S&P 500 closed on a negative note, with energy, consumer discretionary and communication services stocks recording the biggest losses on Thursday.

The Nasdaq 100 dipped 0.75% to close at 15,089.45 on Wednesday, amid losses in shares of Tesla Inc (NASDAQ: TSLA) and Amazon.com, Inc. (NASDAQ: AMZN).

The S&P 500 fell 0.79%, while the Dow Jones dropped 1.07% to 33,922.26 in the previous session.

The Chicago Board Options Exchange's CBOE Volatility Index (VIX) rose 8.9% to close at 15.44 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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