US stocks end lower on valuation concerns; fear index soars

ISTANBUL

US stocks ended lower on Tuesday on concerns over high valuations of big technology-related shares, while the volatility index soared at the close.

The Dow Jones Industrial Average fell 1.07%, or 498.50 points, to close at 46,091.74.

The Nasdaq decreased 1.21%, or 275.23 points, to 22,432.85, while the S&P 500 lost 0.83%, or 55.09 points, to 6,617.32.

The Volatility Index (VIX), also known as the "fear index," soared 10.32% to 24.69.

Following the end of the longest government shutdown in US history last week, economic data announced this week is being closely watched, while investors are eagerly awaiting the employment report, one of the critical pieces of data that remained unreleased during this period.

Ahead of the report, the US Department of Labor released some data on unemployment figures: the number of first-time applicants for unemployment benefits in the country reached 232,000 in the week ending Oct. 18.

The number of applicants for unemployment benefits in the week ending Sept. 20, the last period for which data was released before the federal government shutdown, was recorded at 219,000.

Additionally, the ADP Research Institute reported that private sector employment in the US decreased by an average of 2,500 jobs per week in the four-week period ending Nov. 1.

On the monetary policy front, expectations for interest rate cuts by the Federal Reserve appear to be losing steam, with money markets pricing in a 50% probability of a December rate cut.