The S&P 500 closed lower by more than 1% on Tuesday amid a decline in regional bank shares.
The KBW regional banking index recorded its biggest daily percentage decline since March 13.
The Fed is likely to raise interest rates by an additional 25 basis points on Wednesday.
Chegg Inc CHGG dropped over 48% on Tuesday after the company issued weak revenue guidance and reported a decline in subscription services subscribers.
Majority of the sectors on the S&P 500 closed on a negative note, with energy and financial 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 0.89% to close at 13,113.66 on Tuesday, amid losses in shares of NVIDIA Corporation NVDA and Tesla Inc TSLA.
The S&P 500 fell 1.16%, while the Dow Jones lost 1.08% to 33,684.53 in the previous session.
The Chicago Board Options Exchange’s CBOE Volatility Index (VIX) jumped 10.6% to close at 17.78 on Tuesday, settling at nearly a one-week high.
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.