Nasdaq Jumps 2% After Nvidia, Other Tech Stocks Bounce Back From DeepSeek Hit: Greed Index Remains In 'Fear' Zone

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

U.S. stocks settled higher on Tuesday, with the Nasdaq Composite jumping 2% during the session after Monday’s devastating crash triggered by DeepSeek. Shares of Nvidia Corp. NVDA jumped around 9% on Tuesday, after losing almost $600 billion in market value.

The Federal Reserve will also announce its latest interest-rate decision on Wednesday.

General Motors Co. GM posted better-than-expected fourth-quarter earnings on Tuesday. Lockheed Martin Corp. LMT shares fell over 9% on Tuesday after the company reported mixed fourth-quarter 2024 results.

On the economic data front, U.S. durable goods orders declined 2.2% month-over-month to $276.1 billion in December, following a revised 2% decline in November. The S&P CoreLogic Case-Shiller 20-city home price index rose 4.3% year-over-year in November, compared to 4.2% in the previous month.

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

The Dow Jones closed higher by around 137 points to 44,850.35 on Tuesday. The S&P 500 rose 0.92% to 6,067.70, while the Nasdaq Composite climbed 2.03% at 19,733.59 during Tuesday's session.

Investors are awaiting earnings results from Tesla Inc. TSLA, Microsoft Corp. MSFT, and Meta Platforms Inc. META today.

What is CNN Business Fear & Greed Index?

At a current reading of 44.3, the index remained in the “Fear” zone on Tuesday, versus a prior reading of 40.8.

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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