Investor Optimism Decreases Slightly; Inflation Data In Focus

The CNN Money Fear and Greed index showed some decline in the overall market sentiment, while the index remained in the "Greed" zone on Tuesday.

U.S. stocks closed mixed on Tuesday, with the Dow Jones index settling slightly lower during the session.

Data on the March inflation rate will be released on Wednesday. Economists expect inflation to increase 0.3% month over Month.

On the economic data front, the NFIB Small Business Optimism Index declined for a third straight month to a reading of 88.5 in March, compared to market estimates of 90.2.

Shares of Cognyte Software Ltd. CGNT fell around 14% on Tuesday after the company reported fourth-quarter results and issued FY25 guidance. Tilray Brands, Inc. TLRY shares tumbled more than 20% after the company missed third-quarter estimates and said it no longer expects to generate positive adjusted free cash flow for the full fiscal year 2024.

Most sectors on the S&P 500 closed on a positive note, with real estate, utilities, and consumer staples stocks recording the biggest gains on Tuesday. However, financial and industrial stocks bucked the overall market trend, closing the session lower.

The Dow Jones closed lower by around 9 points to 38,883.67 on Tuesday. The S&P 500 gained 0.14% at 5,209.91, while the Nasdaq Composite rose 0.32% at 16,306.64 during Tuesday’s session.

Investors are awaiting earnings results from Lakeland Industries, Inc. LAKE, Richardson Electronics, Ltd. RELL, and Delta Air Lines, Inc. DAL today.

At a current reading of 61.2, the index remained in the "Greed" zone on Tuesday, versus a prior reading of 62.4.

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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