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Fear & Greed Index Moves To 'Greed' Zone Ahead of Fed's Rate Decision

Author: Avi Kapoor | January 31, 2024 05:12am

The CNN Money Fear and Greed index showed some decline in the overall market sentiment, with the index moving to the "Greed" zone on Tuesday.

U.S. stocks closed mixed on Tuesday, ahead of the Federal Reserve’s interest rate decision. The Fed will announce its policy decision today, with markets expecting the central bank to keep rates unchanged.

Shares of General Motors Company (NYSE:GM) rose around 7.8% on Tuesday after the company reported better-than-expected fourth-quarter financial results and issued 2024 adjusted EPS guidance above estimates. F5, Inc. (NASDAQ:FFIV) also posted better-than-expected results for its first quarter.

As far as the earnings season is concerned, around 29% of the S&P 500 companies have released quarterly results so far, with around 79% of those exceeding market estimates.

Microsoft (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL) released earnings reports after the closing bell on Tuesday.

On the economic data front, the S&P CoreLogic Case-Shiller home price index climbed 5.4% year-over-year in November versus a 4.9% rise in October. The FHFA house price index rose by 0.3% from the prior month in November. The number of job openings climbed by 101,000 from the prior month to 9.026 million in December.

Most sectors on the S&P 500 closed on a positive note, with financial and energy stocks recording the biggest gains on Tuesday. However, real estate and tech stocks bucked the overall market trend, closing the session lower.

The Dow Jones closed higher by around 134 points to 38,467.31 on Tuesday. The S&P 500 fell 0.06% at 4,924.97, while the Nasdaq Composite fell 0.76% at 15,509.90 during Tuesday’s session.

Investors are awaiting earnings results from Phillips 66 (NYSE:PSX), The Boeing Company (NYSE:BA), QUALCOMM Incorporated (NASDAQ:QCOM) and Mastercard Incorporated (NYSE:MA) today.

At a current reading of 74.1, the index moved to the "Greed" zone on Tuesday, versus a prior reading of 75.7 .

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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