U.S. stocks ended lower on Tuesday, ahead of the much-awaited interest rate decision from the Federal Reserve.
Markets are fully pricing a rate hike of at least 75 basis points at the end of Fed's policy meeting, with some of the traders also expecting a whopping 100 bps hike. The benchmark S&P 500 index has tumbled around 19% so far this year, settling below the $3,900 level for the third consecutive session.
Shares of Ford Motor Company F dropped over 12% on Tuesday after the company said it expects Q3 inflation-related supply costs to be $1 billion above what was initially expected.
The Nasdaq 100 fell 0.85% to close at 11,851.54 on Tuesday, while the S&P 500 fell 1.13%. The Dow Jones dipped around 313 points to settle at 30,706.23 in the previous session.
Shares of Amazon.com, Inc. AMZN and Meta Platforms, Inc. META also closed lower on Tuesday.
All the major sectors on the S&P 500 closed on a lower note, with real estate and materials stocks recording the biggest plunge on Tuesday.
The Chicago Board Options Exchange's CBOE Volatility Index (VIX) jumped 7.8% to 27.77 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.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.