The U.S. stock market experienced a downturn on Tuesday, with the S&P 500 and Nasdaq Composite snapping their eight-day winning streak. This decline occurred amidst a slight decrease in the overall market sentiment, as reflected by the CNN Money Fear and Greed index. Despite the dip, the index remained in the “Neutral” zone, suggesting a balanced outlook among investors.
The market is currently focused on the upcoming Federal Reserve’s annual Jackson Hole Economic Symposium, scheduled for this week. Investors are particularly keen on Fed Chair Jerome Powell’s comments, expected to be delivered on Friday. The minutes from the Fed’s July policy meeting are also scheduled to be released today, providing further insights into the central bank’s thinking.
Several key earnings reports are also drawing attention. Palo Alto Networks, Inc. (PANW) saw its shares surge over 7% on Tuesday after the company reported better-than-expected fourth-quarter results and issued strong guidance. Lowe’s Companies, Inc. (LOW) also announced stronger-than-expected second-quarter earnings, but revealed a decline in comparable sales and revised its FY24 outlook downwards.
Across the S&P 500, most sectors closed in the red, with energy, materials, and financials stocks experiencing the biggest losses. However, consumer staples and healthcare stocks bucked the trend, ending the session higher. The Dow Jones closed down around 62 points to 40,834.97 on Tuesday. The S&P 500 fell 0.20% to 5,597.12, while the Nasdaq Composite dropped 0.33% to 17,816.94.
Investors are eagerly awaiting earnings reports from The TJX Companies, Inc. (TJX), Target Corporation (TGT), and Zoom Video Communications, Inc. (ZM) today.
What is the CNN Business Fear & Greed Index?
The CNN Money Fear and Greed Index measures the current market sentiment. It operates on the principle that higher fear puts downward pressure on stock prices, while higher greed has the opposite effect. The index is calculated using seven equally weighted indicators and ranges from 0 to 100, with 0 representing maximum fear and 100 indicating maximum greed. The index currently stands at 44.8, remaining in the “Neutral” zone, down slightly from the prior reading of 46.9.
