The CNN Money Fear and Greed index showed a decline in overall market sentiment, while the index remained in the “Neutral” zone on Tuesday.
U.S. stocks settled lower on Tuesday, with the Nasdaq Composite falling around 0.2% amid a decline in chip stocks.
Chip stocks were hit after China’s CXMT announced progress on a more efficient memory-cell design, sending Samsung Electronics Co. Ltd. (OTC:SSNLF) and SK Hynix Inc. (NASDAQ:SKHY) down in Seoul.
Micron Technology Inc. (NASDAQ:MU) dropped 3.6% and Applied Materials Inc. (NASDAQ:AMAT) tumbled 6.7%.
JPMorgan Chase & Co. (NYSE:JPM) posted downbeat earnings for the third quarter, while Goldman Sachs Group Inc. (NYSE:GS) crushed market expectations. Wells Fargo & Co. (NYSE:WFC) fell 3.1% following weak quarterly revenue.
On the economic data front, the U.S. NFIB small business optimism index fell to 97.9 in September, recording the lowest level in three months, and compared to 98.7 in August.
Most sectors on the S&P 500 closed on a negative note, with health care, consumer staples and financial stocks recording the biggest losses on Tuesday. However, energy and communication services stocks bucked the overall market trend, closing the session higher.
The Dow Jones closed lower by around 181 points to 51,670.10 on Tuesday. The S&P 500 fell 0.02% to 7,805.45, while the Nasdaq Composite fell 0.15% to 27,204.38 during Tuesday’s session.
Investors are awaiting earnings results from Bank of America Corp. (NYSE:BAC), Morgan Stanley (NYSE:MS) and Progressive Corp. (NYSE:PGR) today.
What is CNN Business Fear & Greed Index?
At a current reading of 45, the index remained in the “Neutral” zone on Tuesday, versus a prior reading of 46.
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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