Investor Sentiment Improves Slightly Following Dovish Comments From Fed's Waller

BY Benzinga | ECONOMIC | 11/29/23 01:53 AM EST

The CNN Money Fear and Greed index showed some improvement in overall market sentiment, with the index remaining in the "Greed" zone on Tuesday.

U.S. stocks closed higher on Tuesday following recent comments from Federal Reserve officials.

Fed Governor Christopher Waller indicated that if inflation continues to decline over the next few months, there could be strong economic justification for reducing the policy rate.

Stocks have recorded gains during November, with the Dow Jones and S&P 500 on course to end the month higher by around 7.2% and 8.6%, respectively.

Shares of The Boeing Company (BA) gained 1.4% on Tuesday after RBC Capital upgraded the stock from Sector Perform to Outperform and raised its price target from $200 to $275.

On the economic data front, the Conference Board's consumer confidence index climbed to 102 in November, versus a revised reading of 99.1 in October. The S&P CoreLogic Case-Shiller 20-city home price index increased 3.9% year-over-year in September, recording the biggest increase since Dec. 2022 and compared to a revised 2.1% rise in August.

Most sectors on the S&P 500 closed on a positive note, with consumer discretionary and real estate stocks recording the biggest gains on Tuesday. However, health care and industrials stocks bucked the overall market trend, closing the session lower.

The Dow Jones closed higher by around 84 points to 35,416.98 on Tuesday. The S&P 500 rose 0.10% at 4,554.89, while the Nasdaq Composite rose 0.29% at 14,281.76 during Tuesday's session.

Investors are awaiting earnings results from Hormel Foods Corporation (HRL) , Salesforce, Inc. (CRM) and Dollar Tree, Inc. (DLTR) today.

At a current reading of 65.4, the index remained in the "Greed" zone on Tuesday, versus a prior reading of 65.1.

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.

 

Read Next: Top 5 Risk Off Stocks Which Could Rescue Your Portfolio This Month

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