The CNN Money Fear and Greed index showed some easing in the fear level among U.S. investors after the Dow Jones closed higher by around 200 points on Monday.
The US Federal Reserve is set to start a two-day policy meeting on Tuesday. The US central bank will announce its policy decision on Wednesday, with markets expecting a rate hike of at least 75 basis points.
Nine out of the eleven S&P 500 sectors closed the session on a positive note, with materials, industrials and consumer discretionary stocks recording the biggest surge.
US stocks dropped last week following hotter-than-expected data on inflation for the month of August.
The Dow gained 0.64% to close at 31,019.68 on Monday. The S&P 500 rose 0.69% to 3,899.89, while the Nasdaq Composite surged 0.76% to settle at 11,535.02 in the previous session.
Investors are now awaiting earnings results from Apogee Enterprises, Inc. APOG and Stitch Fix, Inc. SFIX, scheduled for release today.
At a current reading of 37.0, the index remained in the "fear" zone, following a previous reading of 36.0.
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 greediness.
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