The U.S. stock market experienced a downturn on Tuesday, with the Dow Jones index falling over 150 points. This decline was driven by a combination of factors, including growing concerns in the Middle East and a slight dip in overall market sentiment as indicated by the CNN Money Fear and Greed index. While the index remained in the ‘Greed’ zone, it did show a decrease from its previous reading.
The tech sector bore the brunt of the losses, with major players like Tesla, Nvidia, and Apple all closing the day lower. On the economic front, construction spending in the U.S. declined by 0.1% month-over-month in August, while the ISM manufacturing PMI remained unchanged at 47.2 in September.
Despite the overall market downturn, not all sectors performed poorly. Energy and utilities stocks bucked the trend, closing the session higher. The Dow Jones ended the day down approximately 173 points at 42,156.97, the S&P 500 fell 0.93% to 5,708.75, and the Nasdaq Composite dipped 1.53% to 17,910.36.
Investors are now awaiting earnings results from Conagra Brands, RPM International, and Levi Strauss, which are expected to be released today.
The CNN Business Fear & Greed Index, a measure of current market sentiment, currently sits at 69.1, still within the ‘Greed’ zone. The index works on the premise that fear exerts downward pressure on stock prices, while greed has the opposite effect. It is calculated using seven equal-weighted indicators and ranges from 0 to 100, with 0 representing maximum fear and 100 signifying maximum greed.
As the market continues to navigate these uncertainties, investors will be closely watching for any signs of a rebound or further decline in the coming days.
