Investor Fear Increases Slightly As US Stocks Settle Lower On First Trading Session Of 2023

The CNN Money Fear and Greed index showed a slight increase in the fear level among US investors.

US stocks closed lower on the first trading session of 2023, giving up gains recorded earlier during the session.

Investors also monitored data which showed US manufacturing PMI dropping to 46.2 for December, versus prior reading of 47.7. Analysts were also expecting a reading of 46.2.

Shares of Tesla, Inc. TSLA and Apple Inc. AAPL both traded lower on Tuesday, weighing on the broader market.

The Dow closed lower by around 10 points to 33,136.37 on Tuesday. The S&P 500 lost 0.40% to 3,824.14, while the Nasdaq Composite fell 0.76% to settle at 10,386.98 in the previous session.

Investors are awaiting earnings results from UniFirst Corporation UNF, Simulations Plus, Inc. SLP and Resources Connection, Inc. RGP today.

At a current reading of 36.0, the index remained in the "Fear" zone, compared to a previous reading of 37.0.

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.

Read This Next: 4 Penny Stocks Insiders Are Buying: Athira Pharma, Great Elm Group And More