The CNN Money Fear and Greed index showed further improvement in the overall market sentiment, while the index remained in the “Greed” zone on Tuesday.
U.S. stocks settled higher on Tuesday, with the S&P 500 settling at a record level during the session amid a surge in artificial intelligence names.
The New York Stock Exchange will close at 1 p.m. ET on Wednesday and will be closed on Thursday for Christmas Day.
Gross domestic product expanded at a 4.3% annualized pace in the third quarter, beating estimates near 3.3% and marking the fastest growth rate in two years.
That strength prompted traders to scale back expectations for near-term Federal Reserve easing. Markets now price roughly a 15% probability of a 25-basis-point cut in late January, down from 20% a day earlier. Expectations have narrowed to two cuts in 2026, with June and September seen as the most likely windows.
On the other economic data front, U.S. industrial production increased 0.1% per month across October and November. U.S. durable goods orders declined by 2.2% month-over-month to $307.4 billion in October, compared to a revised 0.7% growth from September, versus market estimates of a 1.5% decline.
Novo Nordisk A/S (NYSE:NVO) shares jumped more than 7% on Tuesday following FDA approval of its Wegovy pill.
Most sectors on the S&P 500 closed on a positive note, with communication services, information technology and energy stocks recording the biggest gains on Tuesday. However, consumer staples and health care stocks bucked the overall market trend, closing the session lower.
The Dow Jones closed higher by around 80 points to 48,442.41 on Tuesday. The S&P 500 rose 0.46% to 6,909.79, while the Nasdaq Composite jumped 0.57% to 23,561.84 during Tuesday’s session.
What Is CNN Business Fear & Greed Index?
At a current reading of 59.2, the index remained in the “Greed” zone on Tuesday, versus a prior reading of 57.3.
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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