S&P 500 Falls For Third Session: Investor Sentiment Declines, Fear & Greed Index Remains In 'Neutral Zone

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

U.S. stocks settled lower on Tuesday, with the Dow Jones index falling 0.2% during the session. The S&P 500 also declined on Tuesday, recording losses for the third straight session.

FONAR Corp. (NASDAQ:FONR) shares shot up around 27% on Tuesday after the company confirmed its take-private deal.

On the economic data front, the Case-Shiller Home Price Index increased 1.3% year-over-year in October, compared to a 1.4% surge in the previous month and versus market estimates of a 1.1% gain. The FHFA house price index rose 0.4% in October, following a 0.1% decline in September, and versus market estimates of a 0.1% increase. The Chicago Business Barometer surged to 43.5 in December from 36.3 in the previous month and topping market expectations of 39.5.

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

The Dow Jones closed lower by around 95 points to 48,367.06 on Tuesday. The S&P 500 slipped 0.14% to 6,896.24, while the Nasdaq Composite declined 0.24% to 23,419.08 during Tuesday's session.

What Is CNN Business Fear & Greed Index?

At a current reading of 48.9, the index remained in the “Neutral” zone on Tuesday, versus a prior reading of 49.1.

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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