The CNN Money Fear and Greed index showed a decline in the overall market sentiment, while the index moved to the “Neutral” zone on Tuesday.
U.S. stocks settled lower on Tuesday, with the Nasdaq Composite falling more than 150 points during the session. The S&P 500 also snapped a seven-day winning streak during the session.
The blackout in economic data due to the U.S. government shutdown hasn’t dented expectations that the Federal Reserve will continue to cut interest rates. Markets continue to price in a 95% chance of a 25-basis-point rate cut at the October 30 meeting.
Most sectors on the S&P 500 closed on a negative note, with industrials, consumer discretionary and communication services stocks recording the biggest losses on Tuesday. However, consumer staples and utilities stocks bucked the overall market trend, closing the session higher.
The Dow Jones closed lower by around 92 points to 46,602.98 on Tuesday. The S&P 500 fell 0.38% to 6,714.59, while the Nasdaq Composite dipped 0.67% to 22,788.36 during Tuesday's session.
Investors are awaiting earnings results from AZZ Inc. (NYSE:AZZ), Richardson Electronics Ltd. (NASDAQ:RELL) and Bassett Furniture Industries Inc. (NASDAQ:BSET) today.
What is CNN Business Fear & Greed Index?
At a current reading of 52.7, the index moved to the “Neutral” zone on Tuesday, versus a prior reading of 56.7.
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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