Benzinga - by Lisa Levin, Benzinga Editor.
The CNN Money Fear and Greed index remained in the "Fear" zone on Tuesday.
U.S. stocks closed lower, with the Dow Jones Industrial Average recording its worst session since March.
Investors are concerned that the Federal Reserve’s commitment to keeping interest rates high for an extended period could slow the country’s economic growth.
On the economic data front, sales of new single-family houses fell by 8.7% to an annualized rate of 675,000 in August. The Conference Board’s consumer confidence index declined to 103 in September versus 108.7 in the previous month.
Amazon.com, Inc (NYSE: AMZN) shares fell around 4% on Tuesday as the Federal Trade Commission and 17 states filed suit against the company, accusing it of exploiting monopolistic power against rivals.
All sectors on the S&P 500 closed on a negative note, with utilities and consumer discretionary stocks recording the biggest losses on Tuesday.
The Dow closed lower by around 388 points to 33,618.88 on Tuesday. The S&P 500 fell 1.47% at 4,273.53, while the Nasdaq Composite lost 1.57% at 13,063.61 during Tuesday’s session.
Investors are awaiting earnings results from Paychex, Inc. (NASDAQ: PAYX), Worthington Industries, Inc. (NYSE: WOR) and Micron Technology, Inc. (NASDAQ: MU) today.
At a current reading of 26.5, the index remained in the "Fear" zone on Tuesday, compared to a previous reading of 31.6.
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.
Read Next: Top 4 Materials Stocks Which Could Rescue Your Portfolio This Month
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.