Nasdaq Tumbles Over 1% As Super Micro And Other Chip Stocks Decline: Fear & Greed Index Remains 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 lower on Wednesday, ahead of the earnings report from NVIDIA Corporation NVDA, which was released after the closing bell. The company's stock fell in after-hours trading after the company's gross margin contracted from the first quarter. However, Nvidia reported better-than-expected earnings and sales results for its second quarter on Wednesday.

Foot Locker, Inc FL shares tumbled around 10% on Wednesday following the release of quarterly results. Super Micro Computer, Inc. SMCI shares dipped around 19% after the company announced that it would delay its Form 10-K filing.

On the economic data front, mortgage applications in the U.S. rose 0.5% from the earlier week in the period ending Aug. 23.

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

The Dow Jones closed lower by around 159 points to 41,091.42 on Wednesday. The S&P 500 fell 0.60% to 5,592.18, while the Nasdaq Composite dipped 1.12% to close at 17,556.03 during Tuesday's session.

Investors are awaiting earnings results from Best Buy Co., Inc. BBY, Dollar General Corporation DG, and Dell Technologies Inc. DELL today.

What is CNN Business Fear & Greed Index?

At a current reading of 52, the index was in the “Neutral” zone on Wednesday, versus a prior reading of 55.

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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