Market Volatility Decreases Further After US Stocks Record Gains

US stocks recorded gains on Tuesday, with the S&P 500 settling at its strongest level in 2-1/2 months.

Best Buy Co., Inc (NYSE:BBY) was the best performing stock on the S&P 500, with the company’s stock jumping 12.8% on Tuesday. Best Buy reported better-than-expected Q3 EPS and sales results.

However, Dollar Tree, Inc. (NASDAQ:DLTR) shares dipped 7.8% after the company reported Q3 earnings results.

All the major sectors on the S&P 500 closed on a positive note, with energy and materials stocks recording the biggest surge on Tuesday.

The Nasdaq 100 jumped 1.48% to close at 11,724.84 on Tuesday, amid gains in shares of Tesla Inc (NASDAQ:TSLA) and Apple Inc (NASDAQ:AAPL). The S&P 500 rose 1.36%, while the Dow Jones jumped around 398 points to settle at 34,098.10 in the previous session.

The Chicago Board Options Exchange's CBOE Volatility Index (VIX) fell 3.7% to 21.54 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.