Nasdaq Dips Over 1% Ahead Of Nvidia Earnings: Greed Index Moves To 'Extreme Fear' Zone

The CNN Money Fear and Greed index showed a decline in the overall market sentiment, while the index moved to the “Extreme Fear” zone on Tuesday.

U.S. stocks settled mixed on Tuesday, with the Dow Jones index gaining more than 150 points during the session.

Home Depot Inc. HD reported better-than-expected fourth-quarter 2024 results and provided its 2025 outlook. Keurig Dr Pepper Inc. KDP also posted stronger-than-expected quarterly results.

On the economic data front, the S&P CoreLogic Case-Shiller 20-city home price index rose by 4.5% year-over-year in December compared to 4.3% in the previous month. The FHFA house price index increased by 0.4% in December.

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

The Dow Jones closed higher by around 160 points to 43,621.16 on Tuesday. The S&P 500 fell 0.47% to 5,955.25, while the Nasdaq Composite fell 1.35% at 19,026.39 during Tuesday's session.

Investors are awaiting earnings results from NVIDIA Corp. NVDA, Lowe’s Companies Inc. LOW, and TJX Companies Inc. TJX today.

What is CNN Business Fear & Greed Index?

At a current reading of 22.9, the index moved to the “Extreme Fear” zone on Tuesday, versus a prior reading of 27.8.

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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