Market Volatility Increases Sharply Following GDP Data; S&P 500 Settles Lower

The S&P 500 closed lower on Thursday, while the Dow Jones snapped its longest winning streak since 1987.

On Wednesday, the Fed raised its benchmark overnight interest rate by 25 basis points as expected.

Data released Thursday showed that the U.S. economy expanded faster-than-expected during the recent quarter.

eBay Inc. (NASDAQ: EBAY) shares dipped 10.5% on Thursday after the company reported second-quarter financial results, including a 2% decline in Gross Merchandise Volume. Southwest Airlines Co. (NYSE: LUV) shares fell around 9% following mixed second-quarter results.

Majority of sectors on the S&P 500 closed on a negative note, with real estate and utilities stocks recording the biggest losses on Thursday. However, communication services stocks bucked the overall market trend, settling higher during the Thursday’s session.

Elsewhere, the European Central Bank increased interest rates for the ninth straight time on Thursday.

The Nasdaq 100 fell 0.22% to close at 15,464.93 on Thursday, amid losses in shares of Microsoft Corp (NASDAQ: MSFT) and Tesla Inc (NASDAQ: TSLA).

The S&P 500 fell 0.64%, while the Dow Jones declined 0.67% to 35,282.72 in the previous session.

The Chicago Board Options Exchange's CBOE Volatility Index (VIX) rose 9.3% to close at 14.41 on Thursday.

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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