Volatility In Markets Drops Sharply Following Inflation Data

US stocks closed mixed on Tuesday, as investors assessed the inflation data.

The annual inflation rate in the US eased to 6.4% in January from 6.5% in December.

Marriott International, Inc. (NASDAQ: MAR) shares gained around 4% on Tuesday after reporting better-than-expected quarterly results. Palantir Technologies Inc. (nY PLTR) surged over 21% after the company reported better-than-expected Q4 results and issued Q1 revenue guidance above estimates.

Major sectors on the S&P 500 closed on a mixed note, with consumer discretionary and information technology stocks recording the biggest gains on Tuesday. However, real estate and consumer staples stocks were among the worst performers during the session.

The Nasdaq 100 climbed 0.71% to close at 12,590.89 on Tuesday, amid gains in shares of Tesla Inc (NASDAQ: TSLA) and Apple Inc (NASDAQ: AAPL).

The S&P 500 lost 0.03%, while the Dow Jones fell 0.46% to 34,089.27 in the previous session. The S&P 500 is up around 8% year-to-date.

The Chicago Board Options Exchange's CBOE Volatility Index (VIX) fell 7% to 18.91 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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