Volatility In Markets Increases Following Release Of Fed Minutes

U.S. stocks closed lower on Wednesday, amid a volatile session following the release of minutes from the Federal Reserve's meeting in July.

Major indices cut their losses after minutes from the Fed meeting were released, but they returned to previous lower levels later in the session.

Downbeat earnings results from Target Corporation TGT also weighed on overall market sentiment, with megacap growth stocks, including Amazon.com, Inc. AMZN also closing lower by around 1.9% on Wednesday.

The Nasdaq 100 fell 1.21% to close at 13,470.86 on Wednesday, while the S&P 500 fell 0.72%. The Dow Jones dipped around 172 points to settle at 33,980.32 in the previous session.

Majority of the sectors on the S&P 500 closed on a lower note, with communication services and materials stocks recording the biggest decline on Wednesday. Energy stocks, however, bucked the overall market trend, gaining around 0.8% in the previous session.

The Chicago Board Options Exchange's CBOE Volatility Index (VIX) rose 1.1% to 19.90 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.