The CNN Money Fear and Greed index showed further improvement in the overall market sentiment, while the index moved to the “Greed” zone on Tuesday.
U.S. stocks settled higher on Tuesday, with the Dow Jones index jumping more than 900 points during the session, hitting a fresh record high.
Crude oil prices fell sharply on growing conviction that a deal to reopen the Strait of Hormuz is days away.
On the earnings front, McDonald’s Corp. (NYSE:MCD) posted upbeat earnings for the second quarter on Tuesday. Pfizer Inc (NYSE:PFE) reported better-than-expected earnings for the second quarter on Tuesday. Caterpillar Inc. (NYSE:CAT) reported upbeat second-quarter revenue and raised its full-year sales outlook.
On the economic data front, the U.S. trade deficit shrank to $73.3 billion in June from $77.6 billion in the previous month. U.S. imports declined by 1.8% from the previous month to $388 billion in June, while exports dropped 0.9% to a four-month low level of $314.7 billion in June.
Most sectors on the S&P 500 closed on a positive note, with industrials, information technology and materials stocks recording the biggest gains on Tuesday. However, energy and utilities stocks bucked the overall market trend, closing the session lower.
The Dow Jones closed higher by around 907 points to 54,085.88 on Tuesday. The S&P 500 climbed 1.79% to 7,736.52, while the Nasdaq Composite jumped 2.59% to 26,584.99 during Tuesday’s session.
Investors are awaiting earnings results from Eli Lilly and Co (NYSE:LLY), Walt Disney Co. (NYSE:DIS) and SanDisk Corp. (NASDAQ:SNDK) today.
What is CNN Business Fear & Greed Index?
At a current reading of 58.2, the index moved into the “Greed” zone on Tuesday, up from a prior reading of 50.7.
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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