The CNN Money Fear and Greed index showed some improvement in the overall market sentiment, while the index remained in the “Fear” zone on Tuesday.
U.S. stocks settled mostly higher on Tuesday, with the Nasdaq Composite gaining more than 200 points during the session following the release of inflation data.
Headline CPI fell 0.4% month‑over‑month in June, pulling the annual inflation rate down to 3.5%. June’s cooler‑than‑expected Consumer Price Index print gave the Federal Reserve breathing room to hold rates steady this month.
Semiconductor stocks recovered after recording losses in the previous session. Shares of Applied Materials (NASDAQ:AMAT) rose more than 3%, while Micron Technology Inc. (NASDAQ:MU) added around 5% on Tuesday.
On the earnings front, Goldman Sachs Group Inc. (NYSE:GS) rose 9% on Tuesday following the release of quarterly results. Bank of America Corp. (NYSE:BAC) also reported better-than-expected earnings for the second quarter on Tuesday.
Most sectors on the S&P 500 closed on a positive note, with energy, information technology and communication services stocks recording the biggest gains on Tuesday. However, health care and consumer staples stocks bucked the overall market trend, closing the session lower.
The Dow Jones closed higher by around 10 points to 52,508.27 on Tuesday. The S&P 500 rose 0.38% to 7,543.59, while the Nasdaq Composite climbed 0.90% at 26,107.01 during Tuesday’s session.
Investors are awaiting earnings results from Morgan Stanley (NYSE:MS), Johnson & Johnson (NYSE:JNJ) and Progressive Corp (NYSE:PGR) today.
What Is CNN Business Fear & Greed Index?
At a current reading of 43.3, the index remained in the “Fear” zone on Tuesday, versus a prior reading of 41.7.
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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