Market Volatility Increases Following Monday's Sell-Off

U.S. market saw sharp turnaround on Monday, with the Dow Jones, along with other major indices closing lower after recording sharp gains earlier during the session.

The Chicago Board Options Exchange's CBOE Volatility Index (VIX) rose around 3.6% to 25.11 on Tuesday.

Market sentiment was boosted by better-than-expected earnings results from Goldman Sachs Group Inc GS, while Bank of America BAC missed on Q2 expectations.

Energy stocks recorded sharp gains on Monday, while health care stocks were among the worst performing stocks.
Investors will now keep an eye on the US Federal Reserve decision, due later this month, which is expected to result in sharp volatility in the equity markets.

Data on housing starts and permits for June will be released at 8:30 a.m. ET, with analysts expecting starts rebounding to 1.588 million, but permits might decline further to 1.666 million.