Dow Surges Over 650 Points: Fear & Greed Index Remains In 'Extreme Fear' Zone

The CNN Money Fear and Greed index showed some easing in the overall fear level, while the index remained in the “Extreme Fear” zone on Tuesday.

U.S. stocks settled higher on Tuesday, with the Dow Jones index surging more than 650 points during the session.

Nvidia Corp. (NASDAQ:NVDA) sank nearly 2.6% after reports that Meta Platforms Inc. (NASDAQ:META) was considering a multibillion-dollar investment in Alphabet Inc.’s (NASDAQ:GOOG)(NASDAQ:GOOGL) custom AI chips.

Apple Inc. (NASDAQ:AAPL) shares also touched new all-time highs near $280, supported by CEO Tim Cook’s commitment to boosting investment in China. However, the stock pared some gains later, settling higher by 0.4% on Tuesday.

On the economic data front, U.S. producer prices gained by 0.3% month-over-month in September, following a 0.1% decline in the previous month. U.S. retail sales rose by 0.2% month-over-month in September compared to a 0.6% gain in August. U.S. pending home sales gained by 1.9% month-over-month in October following a revised 0.1% growth in the previous month.

Most sectors on the S&P 500 closed on a positive note, with communication services, health care and consumer discretionary stocks recording the biggest gains on Tuesday. However, utilities and energy stocks bucked the overall market trend, closing the session lower.

The Dow Jones closed higher by around 664 points to 47,112.45 on Tuesday. The S&P 500 gained 0.91% to 6,765.88, while the Nasdaq Composite gained 0.67% to 23,025.59 during Tuesday’s session.

Investors are awaiting earnings results from Deere & Co. (NYSE:DE) and Li Auto Inc. (NASDAQ:LI) today.

What is CNN Business Fear & Greed Index?

At a current reading of 14.1, the index remained in the “Extreme Fear” zone on Tuesday, versus a prior reading of 13.7.

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:

Photo via Shutterstock