The CNN Money Fear and Greed index showed a decline in overall market sentiment, while it remained in the “Fear” zone on Tuesday.
U.S. stocks settled lower on Tuesday, with the Nasdaq Composite falling more than 2% amid a global sell-off in semiconductor shares.
Shares of Micron Technology Inc. (NASDAQ:MU) dipped 13%, while SanDisk Corp. (NASDAQ:SNDK) shares also tumbled more than 13% on Tuesday.
On the economic data front, the S&P Global US services PMI climbed to 51.3 in June from 50.7 in the previous month, higher than market estimates of 51. The S&P Global manufacturing PMI rose to 55.7 in June from 55.1 in May, topping market estimates of 54.8 and recording its highest reading since May 2022.
Information technology, industrials and materials stocks were among the biggest losers on Tuesday. Meanwhile, consumer staples and health care stocks closed the session higher.
The Dow Jones closed lower by around 46 points to 51,666.84 on Tuesday. The S&P 500 fell 1.44% to 7,365.46, while the Nasdaq Composite dipped 2.21% at 25,587.04 during Tuesday’s session.
Investors are awaiting earnings results from Paychex Inc. (NASDAQ:PAYX), Micron Technology Inc. (NASDAQ:MU) and Jefferies Financial Group Inc. (NYSE:JEF) today.
What Is CNN Business Fear & Greed Index?
At a current reading of 27.5, the index remained in the “Fear” zone on Tuesday, versus a prior reading of 32.
The Fear & Greed Index is a measure of the current market sentiment. It is based on the premise that higher fear exerts pressure on stock prices, while higher greed has the opposite effect. The index is calculated based on seven equal-weighted indicators. The index ranges from 0 to 100, where 0 represents maximum fear and 100 signals maximum greediness.
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