Market Volatility Increases As Dow Drops 100 Points

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.

Posted In: CBOE Volatility IndexEarningsNewsPre-Market OutlookMarketsTrading Ideas