Investor Fear Eases Ahead Of Fed Decision

The CNN Money Fear and Greed index showed some easing in the fear level among U.S. investors.

US stocks recorded gains for the second session in a row on Tuesday after Treasury Secretary Janet Yellen offered some reassuring words for the U.S. banking system.

Shares of regional banks moved higher on Tuesday, with the SPDR Regional Banking ETF climbing almost 6%.

Investors are awaiting the Fed’s monetary policy decision on Wednesday, with markets expecting a slower pace of tightening from the central bank.

The Dow closed higher by around 316 points to 32,560.60 on Tuesday. The S&P 500 rose 1.30% to 4,002.87, while the Nasdaq Composite added 1.58% to settle at 11,860.11 during the session.

Investors are also awaiting earnings results from Winnebago Industries, Inc. WGO, KB Home KBH and Ollie's Bargain Outlet Holdings, Inc. OLLI today.

At a current reading of 38.0, the index remained in the "Fear" zone, versus a previous reading of 32.0

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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