CBOE Volatility Index Increases Ahead Of Inflation Data

The S&P 500 settled lower on Tuesday, after credit rating agency Moody's downgraded 10 small- to mid-sized lenders.

The S&P 500 Banks index has lost 2.5% year-to-date, versus a 17.2% surge recorded by the S&P 500 index in the same period. The banks index dipped 1.1% during the Tuesday’s session.

Eli Lilly and Company LLY shares jumped around 15% on Tuesday after the company reported upbeat second-quarter results and raised its annual guidance. DISH Network Corporation DISH shares surged 9.5% after the company announced a merger with EchoStar Corporation SATS.

Investors are awaiting the release of CPI and PPI data, scheduled for release on Thursday and Friday, respectively.

Majority of sectors on the S&P 500 closed on a negative note, with materials, consumer discretionary and financial stocks recording the biggest losses on Tuesday. However, health care, utilities and energy stocks closed higher during the Tuesday’s session.

The Nasdaq 100 fell 0.87% to close at 15,273.05 on Tuesday, amid losses in shares of Amazon.com, Inc. AMZN and Microsoft Corp MSFT.

The S&P 500 lost 0.42%, while the Dow Jones fell 0.45% to 35,314.49 in the previous session.

The Chicago Board Options Exchange's CBOE Volatility Index (VIX) rose 1.4% to close at 15.99 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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