Market Volatility Increases Further As Dow Drops Around 125 Points

U.S. stocks closed mostly lower on Tuesday, as investors remained concerned about a potential worldwide recession.

The British pound was slightly changed on Tuesday, after the currency tumbled to $1.0327 on Monday.

On the economic data front, US durable goods orders fell 0.2% month-over-month in August, while new home sales surged 28.8% from a month ago to a five-month high of 685,000 in August.

Shares of Amazon.com, Inc. AMZN and Microsoft Corporation MSFT, meanwhile, traded slightly lower on Tuesday.

The Nasdaq 100 rose 0.16% to close at 11,271.75 on Tuesday, while the S&P 500 fell 0.21%. The Dow Jones dipped around 126 points to settle at 29,134.99 in the previous session.

Major sectors on the S&P 500 closed on a mixed note, with energy stocks recording the biggest gain on Tuesday. Consumer staples and utilities stocks, meanwhile, were among the worst performing stocks in the previous session.

The Chicago Board Options Exchange's CBOE Volatility Index (VIX) gained 5.6% to 34.06 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.