S&P 500 Edges Lower, Market Volatility Declines

US stocks closed slightly lower on Tuesday amid a drop in technology stocks.

The S&P 500 technology index dropped 0.5% on Tuesday, extending losses for the week. However, the index remains sharply higher for the quarter. Treasury yields moved higher, weighing on tech stocks.

Shares of Alibaba Group Holding Limited BABA jumped over 14% on Tuesday following a report suggesting the company will be splitting into six units that may pursue individual IPOs.

Micron Technology Inc MU posted downbeat results for its second quarter after the closing bell on Tuesday.

Major sectors on the S&P 500 closed on a mixed note, with energy and industrials stocks recording the biggest gains on Tuesday. However, communication services and health care stocks closed lower during the session.

The Nasdaq 100 fell 0.49% to close at 12,610.57 on Tuesday, amid losses in shares of Amazon.com, Inc. AMZN and Tesla Inc TSLA.

The S&P 500 fell 0.16%, while the Dow Jones lost 0.12% to 32,394.25 in the previous session.

The Chicago Board Options Exchange's CBOE Volatility Index (VIX) fell 3.1% to 19.97 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.

Read Next: $216M Bet On Occidental Petroleum? Check Out These 3 Stocks Insiders Are Buying