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Fear & Greed Index Moves To 'Extreme Fear' Zone Amid Surge In Treasury Yields

Published 04/10/2023, 07:47
Updated 04/10/2023, 09:10
© Reuters.  Fear & Greed Index Moves To 'Extreme Fear' Zone Amid Surge In Treasury Yields
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Benzinga - by Lisa Levin, Benzinga Editor.

The CNN Money Fear and Greed index showed growth in the fear level, and moved to the "Extreme Fear" zone on Tuesday.

U.S. stocks closed sharply on Tuesday as Treasury yields rose to their highest levels since 2007. With Tuesday’s losses, the 30-stock Dow Jones index turned lower for 2023, down by around 0.4%. However, the S&P 500 index is still higher by around 10% for the year.

Truist Securities maintained Tesla, Inc. (NASDAQ: TSLA) with a Hold and lowered the price target from $254 to $243.

On the economic data front, the number of job openings increased by 690,000 from the prior month to 9.61 million in August, compared to market estimates of 8.8 million.

Most sectors on the S&P 500 closed on a negative note, with consumer discretionary, real estate and information technology stocks recording the biggest losses on Tuesday. However, utilities stocks bucked the overall market trend, closing the session higher.

The Dow Jones closed lower by around 430 points to 33,002.38 on Tuesday. The S&P 500 fell 1.37% at 4,229.45, while the Nasdaq Composite lost 1.87% at 13,059.47 during Tuesday’s session.

Investors are awaiting earnings results from RPM International Inc. (NYSE: RPM), Acuity Brands, Inc. (NYSE: AYI) and Helen of Troy Limited (NASDAQ: HELE) today.

At a current reading of 17.1, the index moved to the "Extreme Fear" zone on Tuesday, compared to a previous reading of 19.8.

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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© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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