The CNN Money Fear and Greed index moved to the “Neutral” zone after US stocks closed sharply lower on Wednesday as midterm election results provided no clarity about the control of US Congress.
Stocks settled lower after recording gains for three sessions in a row as the price of Bitcoin fell to a new bear market low level.
Tapestry, Inc. TPR and Ralph Lauren Corporation RL are set to report quarterly earnings today.
Investors also await consumer price index report due today, with economists expecting headline CPI rising by 7.9% from the previous year.
The Dow dipped 1.95% to close at 32,513.94 on Wednesday. The S&P 500 fell 2.08% to 3,748.57, while the Nasdaq Composite dipped 2.48% to settle at 10,353.17 in the previous session.
At a current reading of 55.0, the index moved to the “Neutral” zone, unchanged from a previous reading of 58.0.
What is CNN Business Fear & Greed Index?
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.