The CNN Money Fear and Greed index showed an improvement in the overall market sentiment, while the index remained in the "Greed" zone on Tuesday.
U.S. stocks settled higher on Tuesday, with the S&P 500 gaining around 1% during the session. Technology stocks recorded gains on Tuesday, with Nvidia Corp. (NASDAQ:NVDA) and Broadcom Inc. (NASDAQ:AVGO) adding 4% and 3% respectively, during the session.
PepsiCo Inc. (NASDAQ:PEP) reported mixed third-quarter results and lowered its 2024 organic revenue guidance.
On the economic data front, the NFIB Small Business Optimism Index rose to 91.5 in September compared to 91.2 in August, and down from market estimates of 91.7. The trade deficit in the U.S. shrank to $70.4 billion in August, recording the lowest level in five months, compared to a revised $78.9 billion gap in July and versus market estimates of a $70.6 billion shortfall.
Most sectors on the S&P 500 closed on a positive note, with consumer discretionary, information technology, and communication services stocks recording the biggest gains on Tuesday. However, energy and materials stocks bucked the overall market trend, closing the session lower.
The Dow Jones closed higher by around 126 points to 42,080.37 on Tuesday. The S&P 500 rose 0.97% to 5,751.13, while the Nasdaq Composite climbed 1.45% at 18,182.92 during Tuesday's session.
Investors are awaiting earnings results from Helen of Troy Limited (NASDAQ:HELE), E2open Parent Holdings, Inc. (NYSE:ETWO), and AZZ Inc. (NYSE:AZZ) today.
What is CNN Business Fear & Greed Index?
At a current reading of 71.9, the index remained in the "Greed" zone on Tuesday, versus a prior reading of 69.4.
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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