Investor Sentiment Improves Further Following Inflation Report

The CNN Money Fear and Greed index showed further improvement in overall sentiment among U.S. investors on Tuesday.

U.S. stocks closed higher on Tuesday following the release of inflation data. The consumer price inflation in the U.S. eased to 4.0% in May, recording the lowest level since March 2021 and compared to market estimates of 4.1%.

The S&P 500 and the Nasdaq recorded their new 13-month highs during the Tuesday’s trading session.

Markets are currently seeing around 91% chance that the Fed will maintain rates at its upcoming meeting.

Oracle ORCL shares settled slightly higher on Tuesday after the company reported better-than-expected fourth-quarter results.

The Dow Jones closed higher by around 145 points to 34,212.12 on Tuesday. The S&P 500 rose 0.69% at 4,369.01, while the Nasdaq Composite added 0.83% to settle at 13,573.32 during the session.

Investors are awaiting earnings results from Lennar Corporation LEN, RF Industries, Ltd. RFIL and Aurora Cannabis Inc. ACB today.

At a current reading of 80.0, the index remained in the "Extreme Greed" zone, versus a previous reading of 78.0

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.

Read Next: Top 5 Tech Stocks Which Could Rescue Your Portfolio This Month