S&P 500, Nasdaq Fall For 2nd Straight Session Amid Nvidia Decline: Fear & Greed Index In 'Neutral' Zone

The CNN Money Fear and Greed index showed a decline in the overall market sentiment, with the index in the “Neutral” zone on Wednesday.

U.S. stocks settled mixed on Wednesday, with the S&P 500 and the Nasdaq Composite recording losses for a second session in a row.

Nvidia Corp. NVDA shares fell 1.7% on Wednesday amid reports that the U.S. Department of Justice (DOJ) subpoenaed Nvidia and other companies as part of an investigation into potential antitrust law violations. Shares of Dollar Tree Inc. DLTR dipped over 22% on Wednesday after the company reported worse-than-expected second-quarter 2024 earnings.

On the economic data front, the trade deficit in the U.S. increased to $78.8 billion in July, recording the biggest gap since June 2022, versus a gap of $73 billion in June.

Most sectors on the S&P 500 closed on a negative note, with energy, information technology, and materials stocks recording the biggest losses on Wednesday. However, utilities and consumer staples stocks bucked the overall market trend, closing the session higher.

The Dow Jones closed higher by around 38 points to 40,974.97 on Wednesday. The S&P 500 fell 0.16% to 5,520.07, while the Nasdaq Composite declined 0.30% at 17,084.30 during Wednesday's session.

Investors are awaiting earnings results from Science Applications International Corporation SAIC, The Toro Company TTC, and Broadcom Inc. AVGO today.

What is CNN Business Fear & Greed Index?

At a current reading of 52.9, the index remained in the “Neutral” zone on Wednesday, versus a prior reading of 54.1.

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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