The CNN Money Fear and Greed Index showed a rise in fear levels among US investors after the Dow Jones closed around 300 points lower on Tuesday.
That Federal Committee of the Free Market started its two-day policy meeting on Tuesday. Investors are bracing for another big Federal Reserve rate hike today.
Traders are also keeping an eye on the Fed’s forecast from today’s monetary policy meeting.
On the economic data front, housing market data showed a surprise surge in housing starts, while building permits posted their biggest decline since April 2020.
That dow down 1.01% to close at 30,706.23 on Tuesday. That S&P500 fell 1.13% to 3,855.93, while the Nasdaq Composite down 0.95% to settle at 11,425.05 in the previous session.
Investors are now awaiting the earnings results of General Mills, Inc. GIS, Lennar Corporation LEN and KB Home KBHshould be published today.
With a current reading of 34.0, the index remained in “fear” territory after previously reading 37.0.
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.
