Market Volatility Increases As Investors Await Fed's Rate Decision

U.S. stocks closed lower on Tuesday, recording losses for the second straight session.

A survey showed US job openings surprisingly increased in September, signalling strong demand for labor even as the Federal Reserve continued to aggressively increase interest rates in a bid to control surging inflation level.

Another report showed US manufacturing activity increased at its slowest pace in around 2-1/2 years during the month of October.

US stocks recorded sharp gains in October, with the Dow Jones recording its biggest monthly percentage rise since 1976.

The Federal Reserve is set to announce its policy decision today, with markets expecting the central bank to increase interest rates by 75 basis points.

Shares of Pfizer Inc. PFE gained over 3% on Tuesday after the company reported better-than-expected Q3 results and raised COVID-19 vaccine sales guidance by 2 billion.
The Nasdaq 100 dipped 1.02% to close at 11,288.95 on Tuesday, while the S&P 500 fell 0.41%. The Dow Jones dropped around 80 points to settle at 32,653.20 in the previous session.

Major sectors on the S&P 500 closed on a mixed note, with eenrgy stocks recording the biggest surge on Tuesday. However, communication services and consumer discretionary stocks were among the worst performers in the previous session..

The Chicago Board Options Exchange's CBOE Volatility Index (VIX) gained 0.7% to 26.06 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.