Market Volatility Rises Following Big Banks Earnings

U.S. stocks settled lower on Friday, as investors digested earnings reports from big banks.

During the last trading session of the volatile week, equities turned lower following data from the University of Michigan, which showed consumer sentiment improving to 59.8 in October, recording the highest level in six months, while inflation expectations increased.

JPMorgan Chase & Co JPM and Citigroup Inc C reported upbeat earnings for the latest quarter.

The Nasdaq 100 dipped 3.1% to close at 10,692.06 on Friday amid a decline in Apple Inc AAPL and Microsoft Corporation MSFT shares, while the S&P 500 fell 2.37%. The Dow Jones dropped around 404 points to settle at 29,634.83 in the previous session.

For the week, the Dow added 1.15%, while the S&P 500 declined around 1.6%.
All the major sectors on the S&P 500 closed on a lower note, with consumer discretionary and energy stocks recording the biggest plunge on Friday.
The Chicago Board Options Exchange's CBOE Volatility Index (VIX) rose 0.3% to close at 32.02 points on Friday.
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.