CBOE Volatility Index Drops; S&P 500 Closes Lower

The S&P 500 settled lower on Tuesday to start the holiday-shortened week.

The Federal Reserve, last week, left rates unchanged at the 5%-5.25% range on Wednesday.

Rivian Automotive, Inc. (NASDAQ: RIVN) shares gained 5.5% on Tuesday after the company announced it signed an agreement with Tesla, Inc. (NASDAQ: TSLA) to give Rivian users access to Tesla's Supercharger network.

Alibaba Group Holding Limited (NYSE: BABA) shares dropped 4.5% after it announced Eddie Wu will succeed Daniel Zhang as its chief executive officer effective Sept. 10. Joe Tsai will take Zhang's place as the group's chairman.

U.S. markets were closed on Monday for the Juneteenth holiday.

Majority of the sectors on the S&P 500 closed on a negative note, with energy and materials stocks recording the biggest losses on Tuesday. However, consumer discretionary stocks bucked the overall market trend, closing higher during the session.

The Nasdaq 100 fell 0.09% to close at 15,070.15 on Tuesday, amid losses in shares of Microsoft Corp (NASDAQ: MSFT) and Analog Devices, Inc (NASDAQ: ADI).

The S&P 500 fell 0.47%, while the Dow Jones dropped 0.72% to 34,053.87 in the previous session.

The Chicago Board Options Exchange's CBOE Volatility Index (VIX) fell 2.2% to close at 13.88 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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