S&P 500 Hits Fresh Record High Amid Surge In Nvidia Shares: Investor Sentiment Improves Further, Fear Index Remains In 'Greed' Zone

The CNN Money Fear and Greed index showed some improvement in the overall market sentiment, but the index remained in the “Greed” zone on Tuesday.

U.S. stocks settled higher on Tuesday, with the S&P 500 jumping to a new high following a sharp increase in NVIDIA Corporation NVDA shares.

Thor Industries, Inc. THO reported better-than-expected earnings for its fourth quarter on Tuesday. AutoZone, Inc. AZO reported weaker-than-expected earnings for its fourth quarter.

On the economic data front, the S&P CoreLogic Case-Shiller home price index in increased by 5.9% year-over-year in July compared to a 6.5% rise in the previous month.  The FHFA house price index rose 0.1% in July, compared to market estimates of a 0.2% increase. Consumer confidence recorded its biggest one-month drop in more than three years, falling to 98.7 in September.

Most sectors on the S&P 500 closed on a positive note, with materials, information technology, and consumer discretionary stocks recording the biggest gains on Tuesday. However, financials and utilities stocks bucked the overall market trend, closing the session lower.

The Dow Jones closed higher by around 84 points to 42,208.22 on Tuesday. The S&P 500 rose 0.25% to 5,732.93, while the Nasdaq Composite gained 0.56% at 18,074.52 during Tuesday's session.

Investors are awaiting earnings results from Cintas Corporation CTAS, Jefferies Financial Group Inc. JEF and Micron Technology, Inc. MU today.

What is CNN Business Fear & Greed Index?

At a current reading of 65.6, the index remained in the “Greed” zone on Tuesday, versus a prior reading of 65.1.

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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