S&P 500 Snaps 4-Session Winning Streak, Market Volatility Increases

The S&P 500 closed lower on Tuesday, snapping a four-session win streak following the release of weak economic reports.

U.S. job openings fell to 9.9 million in February, versus market estimates of 10.4 million. U.S. factory orders dropped for a consecutive month in February.

Data released Monday also showed the ISM manufacturing PMI dropping to 46.3 in March versus a reading of 47.7 in February, and also missing market estimates of 47.5.

AMC Entertainment Holdings Inc (NYSE:AMC) shares dropped more than 23% on Tuesday after the theater chain company reached a settlement with shareholders, which would allow for the conversion of AMC Preferred Equity Units shares into common shares.

Majority of the sectors on the S&P 500 closed on a negative note, with energy and industrials stocks recording the biggest losses on Tuesday. However, communication services and utilities stocks settled higher during the session.

The Nasdaq 100 fell 0.37% to close at 13,100.08 on Tuesday, amid losses in shares of NVIDIA Corporation (NASDAQ:NVDA) and Tesla Inc (NASDAQ:TSLA).

The S&P 500 fell 0.58%, while the Dow Jones lost 0.59% to 33,402.38 in the previous session. The S&P 500 has added around 7% so far this year.

The Chicago Board Options Exchange’s CBOE Volatility Index (VIX) rose 2.4% to 19.00 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.

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