Market Update: Bulls Charge Ahead of Inflation Data Market Update: Bulls Charge Ahead of Inflation Data

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The CNN Money Fear and Greed index showed further improvement in overall market sentiment. Despite lingering in the β€œGreed” zone on Tuesday, the index displayed significant buoyancy, reflecting investor optimism.

Market Performance Summary

U.S. stocks closed mixed on Tuesday, with the Nasdaq Composite edging slightly higher. Notably, Nvidia Corp. NVDA scaled to a fresh all-time high, underlining the bullish fervor in certain sectors.

Juniper Networks, Inc. JNPR witnessed a remarkable surge of around 22% following reports hinting at a potential acquisition deal with Hewlett Packard Enterprise Company HPE.

In economic news, the NFIB Small Business Optimism Index recorded a rise to 91.9 in December, up from 90.6 in November. Additionally, the US trade gap narrowed to $63.2 billion in November from $64.5 billion in the previous month, defying market estimates of a $65 billion gap.

Looking ahead, market participants are eagerly anticipating the release of the consumer price index for December on Thursday, followed by the producer price index on Friday.

Sector Performance and Market Indices

Most sectors on the S&P 500 concluded with losses, predominantly led by declines in energy and materials stocks. Notably, stocks in the information technology and consumer staples sectors defied the prevailing trend, wrapping up the session with gains.

The Dow Jones closed approximately 158 points lower at 37,525.16 on Tuesday. The S&P 500 dipped by 0.15% to 4,756.50, while the Nasdaq Composite edged up by 0.09% to reach 14,857.71 during the session.

Upcoming Earnings Reports

Investors are set to receive earnings results from KB Home KBH, Rocky Mountain Chocolate Factory, Inc. RELL, and Rocky Mountain Chocolate Factory, Inc. RMCF today, further adding to the market’s fervent atmosphere.

Reporting a current reading of 72.6, the Fear & Greed Index remained entrenched in the β€œGreed” zone on Tuesday, markedly elevated from the previous reading of 61.4, indicating heightened investor appetite and exuberance.

The CNN Business Fear & Greed Index

The Fear & Greed Index serves as a barometer of the prevailing market sentiment, predicated on the notion that heightened fear exerts downward pressure on stock prices, while increased greed has the converse effect. Computed based on seven equally-weighted indicators, the index spans a range from 0 to 100, with the lower bound signifying maximum fear and the upper bound denoting pronounced avarice.

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