The CNN Money Fear and Greed Index moved back into the “fear” zone after US stocks posted sharp losses on Tuesday.
According to data from the US Bureau of Labor Statistics, headline CPI rose 8.3% in August compared to 8.5% in July. The August CPI reading came in above average economists’ estimates of 8%.
Markets are now expecting a rate hike of at least 75 basis points, and some even full percentage points, at the forthcoming Fed meeting.
That dow fell 3.94% to close at 31,104.97 on Tuesday. That S&P500 fell 4.32% to 3,932.69, while the Nasdaq Composite Down 5.16% to 11,633.57 in the previous session amid a decline in shares including: apple inc AAPL and Amazon.com, Inc. AMZN.
Investors are now awaiting the earnings results of BRP Inc. DOOO and Tsakos Energy Navigation Limited TNPshould be published today.
With the current reading at 42.0, the index has moved back into the “fear” zone after a previous reading of 49.0.
What is the CNN Business Fear & Greed Index?
The Fear & Greed Index is a measure of current market sentiment. It is based on the premise that higher fear puts pressure on stock prices, while higher greed has the opposite effect. The index is calculated based on seven equally weighted indicators. The index ranges from 0 to 100, with 0 representing maximum fear and 100 representing maximum greed.
