Fear & Greed Index Moves To 'Neutral' Zone After Dow Dips Over 300 Points

The CNN Money Fear and Greed index moved to the "Neutral" zone following a decline in the U.S. stocks on Tuesday.

The Dow Jones tumbled more than 300 points on Tuesday following a weak forecast from The Home Depot, Inc. HD.

Home Depot shares dropped around 2.2% on Tuesday after the company reported downbeat first-quarter revenue and lowered FY23 guidance.

Retail sales in the US rose 0.4% month-over-month in April following two straight months of declines, but came in below market expectations for a 0.8% growth.

The Dow Jones closed lower by around 336 points to 33,012.14 on Tuesday. The S&P 500 fell 0.64% at 4,109.90, while the Nasdaq Composite fell 0.18% to settle at 12,343.05 during the session.

Investors are awaiting earnings results from Target Corporation TGT, The TJX Companies, Inc. TJX and Cisco Systems, Inc. CSCO today.

At a current reading of 55.0, the index remained in the "Neutral" zone, versus a previous reading of 59.0

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.

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