Market optimism experienced a slight decline as per the CNN Money Fear and Greed index. Despite this, the market sentiment remained within the “Greed” zone on Tuesday.
The U.S. stock market saw a mixed closing on Tuesday, with the Dow Jones index edging lower during the session.
Eyes are on the upcoming data release of the March inflation rate scheduled for Wednesday. Analysts anticipate a 0.3% increase in inflation on a month-over-month basis.
The NFIB Small Business Optimism Index showcased a downward trend for the third consecutive month, hitting a reading of 88.5 in March, falling short of market projections set at 90.2.
Cognyte Software Ltd. (CGNT) observed a 14% drop in shares following the disclosure of its fourth-quarter results and FY25 guidance. On the other hand, Tilray Brands, Inc. (TLRY) witnessed over a 20% decline post missing third-quarter estimates and retracting its positive adjusted free cash flow expectation for the full fiscal year 2024.
While the majority of sectors on the S&P 500 concluded on a positive note, real estate, utilities, and consumer staples stocks emerged as the top gainers. However, financial and industrial stocks deviated from the market trend, ending the session on a lower note.
The Dow Jones closed down by approximately 9 points at 38,883.67 on Tuesday. Conversely, the S&P 500 rose by 0.14% to reach 5,209.91, and the Nasdaq Composite saw a 0.32% increase, landing at 16,306.64 by the end of Tuesday’s session.
Investor attention now shifts to the earnings reports expected from Lakeland Industries, Inc. (LAKE), Richardson Electronics, Ltd. (RELL), and Delta Air Lines, Inc. (DAL) today.
With a current rating of 61.2, the Fear and Greed index lingered within the “Greed” zone on Tuesday, down from the previous reading of 62.4.
Understanding the CNN Business Fear & Greed Index
The Fear & Greed Index functions as a barometer of the prevailing market sentiment. It operates on the principle that heightened fear exerts downward pressure on stock prices, while elevated greed tends to have the opposite effect. Calculated based on seven equally weighted indicators, the index spans from 0 to 100, where 0 signifies maximum fear and 100 denotes peak greediness.
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