The CNN Money Fear and Greed Index showed a further decline in overall market sentiment, while the index moved to the “Fear” zone on Tuesday.
U.S. stocks settled lower on Tuesday, with the Dow Jones index falling more than 400 points during the session amid a rise in Treasury yields and crude oil prices, resulting in speculation that the Federal Reserve will increase interest rates this month.
President Donald Trump announced U.S. strikes on Iranian targets near the Strait of Hormuz and warned of a larger attack to come.
However, stocks recorded gains last month, with the Dow gaining more than 1% in August, notching its fifth straight monthly advance. The S&P 500 and Nasdaq also added 2.6% and 3.9%, respectively, last month.
On the economic data front, U.S. job openings rose by 89,000 to 7.271 million in July compared to a revised 7.182 million in the previous month, and down from market estimates of 7.30 million. The ISM manufacturing PMI declined to 54.6 in August from 55.6 in the previous month, and down from market estimates of 55.2.
On the earnings front, Medtronic PLC (NYSE:MDT) shares gained around 2% on Tuesday after the company reported better-than-expected first-quarter financial results and raised its FY27 adjusted EPS guidance.
Most sectors on the S&P 500 closed on a negative note, with consumer discretionary, materials and industrials stocks recording the biggest losses on Tuesday. However, energy and utilities stocks bucked the overall market trend, closing the session higher.
The Dow Jones closed lower by around 419 points to 52,766.88 on Tuesday. The S&P 500 fell 0.71% to 7,631.47, while the Nasdaq Composite declined 1.03% at 26,099.77 during Tuesday’s session.
Investors are awaiting earnings results from Ollie’s Bargain Outlet Holdings Inc (NASDAQ:OLLI), Broadcom Inc (NASDAQ:AVGO) and Hewlett Packard Enterprise Co (NYSE:HPE) today.
At a current reading of 44.2, the index moved to the “Fear” zone on Tuesday, versus a prior reading of 47.5.
What is CNN Business Fear & Greed Index?
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 greed.
Photo via Shutterstock