© Reuters. Fear & Greed Index Moves To ‘Greed’ Zone Following Inflation Data; Dow Tumbles Over 500 Points
Benzinga – by Avi Kapoor, Benzinga Staff Writer.
The CNN Money Fear and Greed index showed decline in the overall market sentiment, with the index moving to the “Greed” zone on Tuesday.
U.S. stocks closed lower on Tuesday following the release of inflation data, with the Dow Jones index dipping more than 500 points during the session.
The annual inflation rate in the U.S. eased to 3.1% in January from 3.4% in December, but came higher than market estimates of 2.9%.
JetBlue Airways Corporation (NASDAQ: JBLU) shares jumped 21.6% on Tuesday after Carl Icahn disclosed a 9.91% stake in the company in a 13D filing. Coca-Cola Company (NYSE: KO) posted better-than-expected sales for its fourth quarter.
The 2-year Treasury yield surged past 4.66%, while the 10-year yield rose above 4.32% following the release of inflation data.
All sectors on the S&P 500 closed on a negative note, with utilities, consumer discretionary and real estate stocks recording the biggest losses on Tuesday.
The Dow Jones closed lower by around 525 points to 38,272.75 on Tuesday. The S&P 500 fell 1.37% at 4,953.17, while the Nasdaq Composite fell 1.80% at 15,655.60 during Tuesday’s session.
Investors are awaiting earnings results from Owens Corning (NYSE: OC), The Kraft Heinz Company (NASDAQ: KHC), Cisco Systems, Inc. (NASDAQ: CSCO) and Louisiana-Pacific Corporation (NYSE: LPX) today.
At a current reading of 68.75, the index moved to the “Greed” zone on Tuesday, versus a prior reading of 72.81.
What is CNN Business Fear & Greed Index?
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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