Fear & Greed Index Moves To 'Neutral' Zone Ahead Of Fed Rate Decision

The CNN Money Fear and Greed index moved to the "Neutral" zone after the Dow Jones dropped more than 300 points on Tuesday.

The three major indices declined for a second straight session ahead of the interest rate decision from the Federal Reserve.

Bank stocks moved lower, with the SPDR S&P Regional Banking ETF dipped over 6%.

After the closing bell, Ford Motor Company F reported better-than-expected earnings and sales results for its first quarter.

The Dow Jones closed lower by around 367 points to 33,684.53 on Tuesday. The S&P 500 fell 1.16% at 4,119.58, while the Nasdaq Composite fell 1.08% to settle at 12,080.51 during the session.

Investors are awaiting earnings results from Phillips 66 PSX, QUALCOMM Incorporated QCOM and The Kraft Heinz Company KHC today.

At a current reading of 53.0, the index moved to the "Neutral" zone, versus a previous reading of 61.0

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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