The CNN Money Fear and Greed Index showed an improvement in overall market sentiment, while the index remained in the “Greed” zone on Tuesday.
U.S. stocks settled higher on Tuesday, with the Dow Jones index gaining more than 150 points during the session, recording its third consecutive winning session amid a decline in Treasury yields.
Within Magnificent Seven stocks, Nvidia Corp. (NASDAQ:NVDA) rose 2.2% ahead of Wednesday’s fiscal second-quarter report.
President Donald Trump said on Truth Social that the U.S. Navy removed "all mines" from the Strait of Hormuz. A day earlier, Treasury Secretary Scott Bessent threatened to impose sanctions on banks and companies that facilitate trade with Iran.
On the economic data front, the S&P Case-Shiller home price index increased 2.1% year-over-year in June, up from 1.6% in the previous month and higher than market estimates of 1.7%. Sales of new single-family homes declined by 10.5% month-over-month to an annualized rate of 607,000 homes in July.
On the earnings front, DICK’S Sporting Goods Inc (NYSE:DKS) shares dropped more than 30% after the company reported worse-than-expected second-quarter financial results.
Most sectors on the S&P 500 closed on a positive note, with information technology, communication services and materials stocks recording the biggest gains on Tuesday. However, energy and consumer staples stocks bucked the overall market trend, closing the session lower.
The Dow Jones closed higher by around 160 points to 53,577.40 on Tuesday. The S&P 500 rose 0.32% to 7,677.28, while the Nasdaq Composite climbed 0.66% at 26,151.30 during Tuesday’s session.
Investors are awaiting earnings results from Nvidia, Williams-Sonoma Inc (NYSE:WSM) and J.M. Smucker Co (NYSE:SJM) today.
What is CNN Business Fear & Greed Index?
At a current reading of 58.6, the index remained in the “Greed” zone on Tuesday, versus a prior reading of 56.1.
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 greed.
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