Markets Turn More Bullish Following Inflation Data

The CNN Money Fear and Greed index showed an improvement in overall market sentiment following the release of US CPI data.

US stocks closed higher on Tuesday following release of lower-than-expected data on inflation.

The Dow Jones jumped over 700 points earlier during the session the consumer price index rose just 0.1% from the prior month in November, compared to market expectations for a 0.3% increase. However, stocks pared gains with traders awaiting a key Federal Reserve interest-rate decision on Wednesday.

The Dow closed higher by around 104 points to 34,108.64 on Tuesday. The S&P 500 rose 0.73% to 4,019.65, while the Nasdaq Composite surged 1.01% to settle at 11,256.81 in the previous session.

REV Group, Inc. (NASDAQ: REVG), Lennar Corporation LEN and Nordson Corporation NDSN are set to report quarterly earnings today.

At a current reading of 61.0, the index remained in the "Greed" zone, compared to a previous reading of 58.0.

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.