U.S. stocks closed sharply lower on Tuesday, following the release of inflation data for August.
All three major indices recorded sharp losses, snapping four-session winning streaks and also recording their biggest single-session percentage declines since June 2020.
U.S. Core CPI, which excludes volatile food and energy prices, jumped higher than expected to 6.3% in August from 5.9% in the previous month.
Shares of Apple Inc AAPL, Microsoft Corp MSFT and Amazon.com Inc AMZN also dropped sharply on Tuesday.
The Nasdaq 100 dipped 5.54% to close at 12,033.62 on Tuesday, while the S&P 500 fell 4.32%. The Dow Jones tumbled around 1,276 points to settle at 31,104.97 in the previous session.
All the major sectors on the S&P 500 closed on a lower note, with communication services and information technology stocks recording the biggest plunge on Tuesday.
The Chicago Board Options Exchange's CBOE Volatility Index (VIX) jumped 10.4% to 26.35 points.
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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