The CNN Money Fear and Greed index showed a decline in the overall market sentiment, while the index remained in the “Greed” zone on Tuesday.
U.S. stocks settled lower on Tuesday, with the Nasdaq Composite falling more than 200 points during the session. The S&P 500 also ended a 3-day winning streak.
Nvidia Corp. NVDA shares fell 2.8% on Tuesday, a day after the company announced a $100 billion investment in OpenAI.
On the economic front, the S&P Global U.S. Composite PMI slowed to 53.6 in September from 54.6 in August, signaling softer growth across both services and manufacturing, broadly in line with forecasts. The U.S. current account deficit shrank by 42.9% to $251.3 billion in the second quarter.
Most sectors on the S&P 500 closed on a positive note, with energy, real estate and utilities stocks recording the biggest gains on Tuesday. However, information technology and consumer discretionary stocks bucked the overall market trend, closing the session lower.
The Dow Jones closed lower by around 89 points to 46,292.78 on Tuesday. The S&P 500 fell 0.55% to 6,656.92, while the Nasdaq Composite dipped 0.95% to 22,573.47 during Tuesday’s session.
Investors are awaiting earnings results from Cintas Corp. CTAS, Thor Industries Inc. THO and KB Home KBH today.
What is CNN Business Fear & Greed Index?
At a current reading of 61.7, the index remained in the “Greed” zone on Tuesday, versus a prior reading of 62.3.
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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