Market Volatility Increases As Dow Drops 100 Points

U.S. stocks closed lower on Wednesday, after recording gains in the previous sessions.

Investors assessed earnings reports from several companies, as Procter & Gamble PG reported better-than-expected Q1 results. Tesla Inc TSLA posted upbeat quarterly earnings, while sales missed estimates.

Data showed UK inflation reaching 10.1% during the month of September.

The Nasdaq 100 fell 0.4% to close at 11,103.38 on Wednesday amid a decline in Amazon.com, Inc. AMZN and Microsoft Corporation MSFT shares, while the S&P 500 fell 0.67%. The Dow Jones dropped around 100 points to settle at 30,423.81 in the previous session.

All the major sectors on the S&P 500 closed on a negative note, with real estate and financial stocks recording the biggest decline on Wednesday. Energy stocks, however, bucked the overall market trend, gaining around 3% in the previous session.

The Chicago Board Options Exchange's CBOE Volatility Index (VIX) rose 0.9% to close at 30.76 points on Wednesday.

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.