The CNN Money Fear and Greed index remained in the “neutral” zone on Wednesday following a decline in the U.S. stock markets.
Wall Street closed lower on Tuesday as tech stocks dropped sharply following warning from Micron Technology, Inc. MU. The company said its Q4 revenue may come in at or below the low end of its guidance range provided in its June earnings call.
Micron’s dismal forecast came a day after Nvidia Corp NVDA issued preliminary Q2 revenue guidance below estimates.
Investors are now awaiting the release of inflation data due today, with analysts expecting a 0.2% month-over-month rise in consumer prices for July.
On the economic data front, U.S. non-farm labor productivity declined an annualized 4.6% with unit labor costs in the nonfarm business sector increasing by 10.8% in the second quarter.
The Dow Jones dropped around 58.13 points to close at 32,774.41 on Tuesday. The S&P 500 lost 0.42%, while the Nasdaq Composite fell 150.53 points, or 1.19%, to settle at 12,493.93 in the previous session.
At a current reading of 49.0, the index remained in the “neutral” zone on Wednesday, following a previous reading of 50.0.
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.
Image and article originally from www.benzinga.com. Read the original article here.