Dow Gains Over 100 Points Following Powell Comments: Fear & Greed Index Remains In 'Neutral' Zone

The CNN Money Fear and Greed index showed almost no change in the overall market sentiment, with the index remaining in the “Neutral” zone on Tuesday.

U.S. stocks settled mixed on Tuesday, as investors digested comments from Federal Reserve Chair Jerome Powell. The Fed chief reiterated that the central bank is in no hurry to cut interest rates during his testimony before the Senate Banking Committee, offering little support for risk assets.

Tesla Inc. TSLA fell by over 4%, reaching the lowest levels in eleven weeks, pressured by weak January auto sales in China. Apple Inc. AAPL and Alibaba Group Holding Limited BABA shares settled higher on Tuesday following a report from The Information indicating the companies partnered to develop AI features for iPhone user in China.

On the economic data front, the NFIB Small Business Optimism Index declined to 102.8 in January compared to 105.1 in the previous month, and down from estimates of 104.6.

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

The Dow Jones closed higher by around 123 points to 44,593.65 on Tuesday. The S&P 500 rose 0.03% to 6,068.50, while the Nasdaq Composite fell 0.36% at 19,643.86 during Tuesday's session.

Investors are awaiting earnings results from CVS Health Corporation CVS, The Kraft Heinz Company KHC and Cisco Systems, Inc. CSCO today.

At a current reading of 46.46, the index remained in the “Neutral” zone on Tuesday, versus a prior reading of 46.54.

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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