The CNN Money Fear and Greed index showed a decline in the overall market sentiment, while the index moved to the “Greed” zone on Tuesday.
U.S. stocks settled mostly lower on Tuesday, with the Dow Jones index falling more than 400 points during the session following a mixed bag of earnings from big banks. The Nasdaq 100 surged to fresh record highs on Tuesday, breaking above the 23,000 mark as Nvidia Corp. (NASDAQ:NVDA) and other chipmakers powered a sharp rally.
Wells Fargo & Company (NYSE:WFC) reported better-than-expected second-quarter adjusted EPS results. JPMorgan Chase & Co. (NYSE:JPM) reported upbeat second-quarter earnings.
On the economic data front, U.S. inflation accelerated for a second straight month. The headline consumer price index rose 2.7% year-over-year in June, the highest since February and in line with expectations. However, core inflation, which strips out food and energy, came in slightly below forecasts at 2.9%, versus 3.0% expected.
Most sectors on the S&P 500 closed on a negative note, with financial, materials and health care stocks recording the biggest losses on Tuesday. However, information technology stocks bucked the overall market trend, closing the session higher.
The Dow Jones closed lower by 436 points to 44,023.29 on Tuesday. The S&P 500 fell 0.40% to 6,243.76, while the Nasdaq Composite gained 0.18% to 20,677.80 during Tuesday’s session.
Investors are awaiting earnings results from Morgan Stanley (NYSE:MS), Goldman Sachs (NYSE:GS) and Bank of America Corporation (NYSE:BAC) today.
What is CNN Business Fear & Greed Index?
At a current reading of 73.6, the index moved to the “Greed” zone on Tuesday, versus a prior reading of 76.2.
The Fear & Greed Index is a measure of the current market sentiment. It is based on the premise that higher fear exerts pressure on stock prices, while higher greed has the opposite effect. The index is calculated based on seven equal-weighted indicators. The index ranges from 0 to 100, where 0 represents maximum fear and 100 signals maximum greediness.
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