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Investor Sentiment Improves Following Economic Reports; S&P 500 Settles Higher

Author: Avi Kapoor | February 28, 2024 03:05am

The CNN Money Fear and Greed index showed some improvement in the overall market sentiment, while the index remained in the "Extreme Greed" zone on Tuesday.

U.S. stocks closed mixed on Tuesday, with the S&P 500 ending the session with modest gains. However, the Dow Jones index settled lower on Tuesday.

The J.M. Smucker Company (NYSE:SJM) posted better-than-expected earnings for its fourth quarter on Tuesday. Macy’s Inc (NYSE:M) reported mixed quarterly results and announced plans to close 150 stores. Zoom Video Communications, Inc. (NASDAQ:ZM) reported better-than-expected fourth-quarter financial results, issued FY25 adjusted EPS guidance above estimates, and authorized a $1.5 billion stock repurchase program.

On the economic data front, U.S. durable goods orders fell by 6.1% month-over-month in January compared to a 0.3% decline in December. The S&P CoreLogic Case-Shiller 20-city home price index climbed by 6.1% year-over-year in December.

Most sectors on the S&P 500 closed on a positive note, with utilities and communication services recording the biggest gains on Tuesday. However, energy and healthcare stocks bucked the overall market trend, closing the session lower.

The Dow Jones closed lower by around 97 points to 38,972.41 on Tuesday. The S&P 500 rose 0.17% at 5,078.18, while the Nasdaq Composite gained 0.37% at 16,035.30 during Tuesday’s session.

Investors are awaiting earnings results from Salesforce, Inc. (NYSE:CRM), HP Inc. (NYSE:HPQ), Advance Auto Parts, Inc. (NYSE:AAP), and The TJX Companies, Inc. (NYSE:TJX) today.

At a current reading of 77.6, the index remained in the "Extreme 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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