Investor Optimism Declines After Dow Settles Lower

The CNN Money Fear and Greed index showed a decline in overall sentiment among U.S. investors on Friday.

The Dow Jones closed lower on Tuesday as investors monitored the development of the debt ceiling deal. Concerns over the potential for further rate increase also weighed on market sentiment.

NVIDIA Corporation (NASDAQ: NVDA) shares gained 3% on Tuesday after the company announced it would build the Israel-1 generative AI cloud supercomputer.

The Dow Jones closed lower by around 50 points to 33,042.78 on Tuesday. The S&P 500 rose 0.01% at 4,205.52, while the Nasdaq Composite climbed 0.32% to settle at 13,017.43 during the session.

Investors are awaiting earnings results from Advance Auto Parts, Inc. (NYSE: AAP), Salesforce, Inc. (NYSE: CRM) and Capri Holdings Limited (NYSE: CPRI) today.

At a current reading of 65.0, the index remained in the “Greed” zone, versus a previous reading of 68.0

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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