Investor Optimism Declines Amid Recession Worries

The CNN Money Fear and Greed index showed further easing in the investor sentiment after the Dow Jones tumbled by around 350 points on Tuesday.

The S&P dropped for a fourth consecutive session amid fears of recession. Markets are largely projecting the Fed to raise interest rates by a half-percentage point when it meets next week.

Shares of Paramount Global PARA dipped around 7% on Tuesday after the company’s CEO warned of lower Q4 advertising revenue.

The Dow dipped over 350 points to close at 33,596.34 on Tuesday. The S&P 500 fell 1.44% to 3,941.26, while the Nasdaq Composite fell 2% to settle at 11,014.89 in the previous session.

Campbell Soup Company CPB, United Natural Foods, Inc. UNFI and GameStop Corp. GME are set to report quarterly earnings today.

At a current reading of 59.0, the index remained in the "Greed" zone, compared to a previous reading of 65.0.

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.