A remarkable shift in market sentiment was witnessed as the CNN Money Fear and Greed index catapulted to the “Neutral” zone, evoking a sense of optimism within the investor community.
Notably, the U.S. stock market surged on Tuesday, propelled by the release of inflation data that exhibited a decline in the annual inflation rate to 3.2% in October, a noticeable relief from the 3.7% in September and August, surpassing market estimates set at 3.3%.
Amid these developments, Home Depot Inc HD garnered attention by reporting third-quarter results that surpassed expectations. Contrastingly, The Beauty Health Company SKIN faced a decline of over 64% following the announcement of weaker-than-anticipated financial results for its third quarter alongside a revised net sales outlook.
The positive momentum was widespread across all sectors of the S&P 500, with utilities, real estate, and consumer discretionary stocks emerging as the frontrunners in Tuesday’s bullish run.
The Dow Jones surged by approximately 490 points to reach 34,827.70 on Tuesday, whereas the S&P 500 experienced a 1.91% upsurge to 4,495.70. Similarly, the Nasdaq Composite scaled new heights, registering a remarkable 2.37% increase to touch 14,094.38 during Tuesday’s session.
Anticipation looms large as investors eagerly await the earnings reports of key players such as Cisco Systems, Inc. CSCO, The TJX Companies, Inc. TJX, and Target Corporation TGT today.
The CNN Business Fear & Greed Index, currently standing at 47.1, transitioned to the “Neutral” zone on Tuesday, gaining significant ground from its previous reading of 42.3, signifying a notable shift in market sentiment.
Piquing curiosity, the Fear & Greed Index serves as a barometer of current market sentiment, leveraging seven equally weighted indicators to gauge the interplay between fear and greed in influencing stock prices. The index spans from 0 to 100, with 0 representing maximal fear and 100 symbolizing heightened greed.
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