The U.S. stock market experienced a positive day on Tuesday, with the S&P 500 gaining approximately 1% as investors embraced a more optimistic outlook. This positive sentiment was reflected in the CNN Money Fear and Greed index, which remained in the “Greed” zone, indicating a prevailing sense of confidence among market participants.
The tech sector was a key driver of the market’s upward trajectory, with notable gains from companies like Nvidia Corp. and Broadcom Inc., which rose by 4% and 3% respectively. While the overall market trend was positive, the energy and materials sectors bucked the trend, closing the session lower.
Beyond the stock market performance, several economic indicators also contributed to the positive mood. The NFIB Small Business Optimism Index climbed to 91.5 in September, indicating improved business sentiment. Additionally, the trade deficit in the United States narrowed to $70.4 billion in August, marking the lowest level in five months.
Investors are now looking ahead to earnings reports from companies like Helen of Troy Limited, E2open Parent Holdings, Inc., and AZZ Inc., which are expected to be released later today.
The CNN Business Fear & Greed Index, a measure of market sentiment, is based on seven equal-weighted indicators and ranges from 0 to 100. A reading of 0 represents maximum fear, while 100 signifies maximum greed. On Tuesday, the index stood at 71.9, indicating a continued presence of optimism in the market.
The Dow Jones Industrial Average 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 the session.
