Volatility In Markets Increases Sharply Ahead Of Fed Minutes

US stocks closed sharply lower, recording their worst performance of the year.

Investors assessed the economic data, which showed the S&P Global composite PMI rising to 50.2 in February from 46.8 in the prior month.

Investors await the release of minutes from the recent Fed's policy meeting, due on Wednesday.

All the major sectors on the S&P 500 closed on a negative note, with consumer discretionary and information technology stocks recording the biggest plunge on Tuesday.

The Nasdaq 100 dipped 2.41% to close at 12,060.30 on Tuesday, amid losses in shares of Tesla Inc TSLA and Apple Inc AAPL.

The S&P 500 fell 2%, recording its worst day since December 15, while the Dow Jones lost 2.06% to 33,129.59 in the previous session.

The Chicago Board Options Exchange's CBOE Volatility Index (VIX) jumped 7.7% to 22.87 points on Tuesday.

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.

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