The Fear & Greed Index is in the news today as the measure of investor confidence has turned to “fear” for the first time since 2023.
The Fear & Greed Index is run by CNN and designed to measure the sentiment of investors taking part in the stock market. When the index shows “greed,” it means there’s high investor confidence. However, a switch to “fear” implies that morale among investors is falling.
The Fear & Greed Index uses seven indicators to determine whether investors are feeling greedy or fearful. These include “market momentum, stock price strength, stock price breadth, put and call options, junk bond demand, market volatility, and safe haven demand,” per CNN. Based on these ratings, the index assigns one of five ratings to traders and the market: “Extreme Fear,” “Fear,” “Neutral,” “Greed” and “Extreme Greed.”
Fear & Greed Index: What The Fear Rating Means for the Market
The biggest concern investors are dealing with is what this means for the stock market. The fear rating could be a sign that a crash is about to happen. If that’s the case, it could result in many traders seeing red.
Investors will keep in mind that the fear rating comes alongside increased inflation. That has interest rates remaining high. Recent inflation data also suggests that the Federal Reserve won’t be lowering rates anytime soon.
There are more stock market stories that traders will want to read about below!
We have all of the hottest stock market news ready to go on Tuesday! A few examples include what’s happening with shares of Trump Media & Technology Group (NASDAQ:DJT), Live Nation Entertainment (NYSE:LYV) and Peraso (NASDAQ:PRSO) stock. All of this info is available below!
More Tuesday Stock Market News
- DJT Stock Alert: Trump Media Is Launching a Streaming TV Service
- Live Nation Antitrust Probe Rattles LYV Stock. What to Know.
- Why Is Peraso (PRSO) Stock Up 53% Today?
On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
