Dow Gains More Than 100 Points Ahead Of Nvidia Earnings; Investor Sentiment Improves, Fear & Greed Index Remains In 'Greed' Zone
U.S. stocks rose on Tuesday, with the Dow Jones gaining over 100 points, driven by improved investor sentiment as indicated by the CNN Money Fear and Greed index, which remains in the 'Greed' zone. The market anticipates a potential rate cut following changes in the Federal Reserve's board. Economic data showed a decline in durable goods orders but an increase in home prices. Most sectors of the S&P 500 closed positively, while consumer staples and real estate lagged. Investors are awaiting earnings from J M Smucker Co, HP Inc, and NVIDIA Corp.
The CNN Money Fear and Greed index showed an improvement in the overall market sentiment, while the index remained in the “Greed” zone on Tuesday.
U.S. stocks settled higher on Tuesday, with the Dow Jones index gaining more than 100 points during the session amid increased expectations of a rate cut following Federal Reserve Governor Lisa Cook's removal and President Donald Trump getting a potential majority on the central bank's board.
On the economic data front, U.S. durable goods orders declined by 2.8% from the previous month to $302.8 billion in July compared to a revised 9.4% plunge in June. The S&P Case-Schiller Home Price Index increased 2.1% year-over-year in June following a 2.8% gain in the previous month.
American Woodmark Corp. AMWD reported weaker-than-expected sales for its fiscal first quarter.
Most sectors on the S&P 500 closed on a positive note, with industrials, health care and financial stocks recording the biggest gains on Tuesday. However, consumer staples and real estate stocks bucked the overall market trend, closing the session lower.
The Dow Jones closed higher by around 136 points to 45,418.07 on Tuesday. The S&P 500 rose 0.41% to 6,465.94, while the Nasdaq Composite gained 0.44% at 21,544.27 during Tuesday's session.
Investors are awaiting earnings results J M Smucker Co SJM, HP Inc HPQ and NVIDIA Corp NVDA today.
At a current reading of 59.7, the index remained in the “Greed” zone on Tuesday, versus a prior reading of 58.4.
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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