Nasdaq, S&P 500 Record Worst Session Since 2022 Amid Tesla, Alphabet Selloff: Investor Optimism Decreases Further

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

U.S. stocks closed lower on Wednesday, with the S&P 500 and the Nasdaq Composite recording their worst day since 2022.

Alphabet Inc. GOOG GOOGL shares fell 5% on Wednesday despite the company reporting upbeat earnings and sales results for its second quarter. Shares of Tesla Inc. TSLA dipped 12.3% after the company reported weaker-than-expected earnings for its second quarter, while sales topped estimates.

On the economic data front, the S&P Global composite PMI climbed to 55.0 in July from 54.8 in the prior month. The U.S. trade deficit in goods shrank to $96.84 billion in June versus a $99.37 billion gap in the earlier month. U.S. new home sales declined 0.6% month-over-month to an annualized rate of 617,000 in June.

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

The Dow Jones closed lower by around 504 points to 39,853.87 on Wednesday. The S&P 500 fell 2.31% at 5,427.13, while the Nasdaq Composite fell 3.64% at 17,342.41 during Wednesday's session.

Investors are awaiting earnings results from Honeywell International Inc. HON, Northrop Grumman Corporation NOC, and American Airlines Group Inc. AAL today.

What is CNN Business Fear & Greed Index?

At a current reading of 41.1, the index moved to the “Neutral” zone on Tuesday, versus a prior reading of 54.3.

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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