Nasdaq Falls 300 Points As Nvidia, Palantir Decline: Greed Index Remains In 'Extreme Fear' Zone

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

U.S. stocks settled lower on Tuesday, with the Nasdaq Composite falling around 300 points during the session. Shares of Palantir Technologies Inc. PLTR fell around 4%, while Nvidia Corp. NVDA declined more than 3% on Tuesday. The Technology Select Sector SPDR Fund also fell more than 1% during the session.

On the economic data front, U.S. import prices increased by 0.4% in February, versus market estimates of a 0.1% decline. U.S. export prices rose by 0.1% month-over-month in February. U.S. industrial production increased by 0.7% in February, surpassing market estimates of 0.2%.

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

The Dow Jones closed lower by around 260 points to 41,581.31 on Tuesday. The S&P 500 fell 1.07% to 5,614.66, while the Nasdaq Composite dipped 1.71% to 17,504.12 during Tuesday's session.

Investors are awaiting earnings results from Signet Jewelers Ltd. SIG, Williams-Sonoma Inc. WSM, and Five Below Inc. FIVE today.

What is CNN Business Fear & Greed Index?

At a current reading of 19.7, the index remained in the “Extreme Fear” zone on Tuesday, versus a prior reading of 22.4.

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.

Read Next: