Investor Sentiment Declines After Moody's Downgrades Credit Ratings Of Banks

The CNN Money Fear and Greed index showed a decline in overall sentiment among U.S. investors on Tuesday.

U.S. stocks closed lower on Tuesday after Moody's downgraded the credit ratings of several US banks.

The SPDR S&P Bank ETF (KBE) fell around 1.3%, with shares of The Goldman Sachs Group, Inc. GS falling over 2% on Tuesday.

United Parcel Service Inc UPS reported mixed second-quarter financial results and issued FY23 revenue guidance below estimates.

Investors are awaiting consumer and producer price index data for the month of July, later during the week.

As far as the earnings season is concerned, 89% of the S&P 500 companies have released quarterly results so far, with around four-fifths of those exceeding market estimates.

The Dow Jones closed lower by around 159 points to 35,314.49 on Tuesday. The S&P 500 fell 0.42% at 4,499.38, while the Nasdaq Composite lost 0.79% at 13,884.32 during the session.

Investors are awaiting earnings results from Charles River Laboratories International, Inc. CRL, The Walt Disney Company DIS and Wynn Resorts, Limited WYNN today.

At a current reading of 70.0, the index remained in the "Greed" zone, versus a previous reading of 72.0

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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