Market Volatility Rises Sharply Following Earnings, Economic Data

The S&P 500 closed lower on Tuesday on the first trading of August.

All three major stock indices recorded gains for July following better-than-expected earnings reports, with the benchmark S&P 500 surging to a 16-month high level on Monday.

Caterpillar Inc CAT shares gained 8.9% on Tuesday after the company reported better-than-expected results for its second quarter. Uber Technologies, Inc. UBER shares fell 5.7% after the company reported worse-than-expected seconc-quarter revenue results and issued third-quarter guidance.

JetBlue Airways Corporation JBLU shares fell 8.3% on Tuesday after the company issued weak third-quarter guidance.

The ISM Manufacturing PMI in the US rose to 46.4 in July versus a nearly three-year low of 46 in the prior month, but down from market estimates of 46.8.

Majority of sectors on the S&P 500 closed on a negative note, with utilities and consumer discretionary stocks recording the biggest losses on Tuesday. However, industrials and information technology stocks closed higher during the Tuesday’s session.

The Nasdaq 100 fell 0.25% to close at 15,718.01 on Tuesday, amid losses in shares of Amazon.com, Inc. AMZN and Tesla Inc TSLA.

The S&P 500 fell 0.27%, while the Dow Jones gained 0.20% to 35,630.68 in the previous session.

The Chicago Board Options Exchange's CBOE Volatility Index (VIX) rose 14.2% to close at 15.57 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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