The US stock market experienced a positive day on Tuesday, with the S&P 500 reaching a new high following a significant jump in NVIDIA Corporation’s stock price. This positive sentiment, however, was tempered by a slight improvement in the CNN Money Fear & Greed Index, which remained in the “Greed” zone despite the uptick.
The Fear & Greed Index, a gauge of current market sentiment, is based on the principle that higher fear pressures stock prices downwards, while greater greed pushes them upwards. Calculated from seven equally weighted indicators, the index ranges from 0 to 100, with 0 representing extreme fear and 100 signifying maximum greed. The current reading of 65.6 suggests that while some fear is creeping into the market, it remains firmly in the “Greed” territory.
Beyond the stock market performance, the economic landscape showed some mixed signals. The S&P CoreLogic Case-Shiller home price index saw a year-over-year increase of 5.9% in July, marking a slight slowdown from the previous month’s 6.5% rise. The FHFA house price index also rose, though at a slower pace than expected. On the other hand, consumer confidence took a significant hit, experiencing its biggest one-month decline in over three years and falling to 98.7 in September.
This positive movement in the market wasn’t universal. While most sectors of the S&P 500 closed in the green, with materials, information technology, and consumer discretionary stocks leading the charge, financials and utilities lagged behind. The Dow Jones Industrial Average closed higher by approximately 84 points, reaching 42,208.22. The S&P 500 climbed 0.25% to 5,732.93, and the Nasdaq Composite gained 0.56% to close at 18,074.52.
Investors are keenly awaiting earnings reports from several key companies, including Cintas Corporation, Jefferies Financial Group Inc., and Micron Technology, Inc., later this week. These reports could provide further insight into the health of the economy and the direction of the market.
