The market mood remains cautious, with the CNN Money Fear and Greed index continuing to reside in the “Fear” zone on Tuesday. Although the index slipped from 40.9 to 39.6, it reflects a lingering sense of uncertainty among investors. Despite this, the broader market showed signs of resilience.
The S&P 500 climbed for the second straight day, closing at 5,495.52, representing a 0.45% increase. The Nasdaq Composite mirrored this upward trend, jumping 0.84% to 17,025.88. However, the Dow Jones bucked the positive sentiment, ending the session down approximately 93 points at 40,736.96.
Within the S&P 500, sectors like real estate, information technology, and consumer discretionary stocks led the way with significant gains. Conversely, energy and financials sectors experienced downward pressure, moving against the overall market trend.
Individual stock performance saw NVIDIA Corporation (NVDA) shares rise by 1.5% on Monday. Advanced Micro Devices, Inc. (AMD) and Microsoft Corporation (MSFT) also closed higher during the trading session.
On the economic data front, the NFIB Small Business Optimism Index released a disappointing reading of 91.2 in August. This marks the lowest point in three months, compared to July’s reading of 93.7.
Investors are now eagerly awaiting earnings reports from companies like Designer Brands Inc. (DBI), Manchester United plc (MANU), and Oxford Industries, Inc. (OXM). These reports will provide further insights into the health of various sectors and potentially impact market sentiment in the coming days.
The CNN Money Fear & Greed Index is a valuable tool for understanding market sentiment. It operates on the principle that heightened fear often leads to downward pressure on stock prices, while increased greed can drive prices upwards. This index is calculated using seven equally weighted indicators, ranging from 0 (extreme fear) to 100 (extreme greed).
