Nasdaq Jumps Over 200 Points as Chip Stocks Gain: Fear & Greed Index Remains in ‘Extreme Fear’ Zone

The CNN Money Fear and Greed Index showed no change in overall market sentiment, while the index remained in the “Extreme Fear” zone on Tuesday.

U.S. stocks settled mixed on Tuesday, with the Nasdaq Composite gaining more than 200 points during the session amid a rebound in chip stocks.

Shares of Apple (NASDAQ:AAPL) fell around 2% on Tuesday after the company announced that its gross margin would land between 45% and 46% in the December quarter. That’s below the 46.3% analysts expected, mainly because of higher memory costs.

Pfizer Inc. (NYSE:PFE) on Tuesday reported upbeat results for the third quarter. Shares of Aehr Test Systems (NASDAQ:AEHR) jumped over 26% after the company reported better-than-expected first-quarter financial results and raised its FY27 sales guidance above estimates.

Treasury yields climbed after the U.S. Bureau of Labor Statistics reported 7.5 million job openings for September, topping expectations of 7.1 million ahead of the midterm elections. Factory orders increased 1.8% in September, beating the 1.2% forecast after a 0.3% gain in August.

Most sectors on the S&P 500 closed on a negative note, with consumer staples, materials and energy stocks recording the biggest losses on Tuesday. However, industrials and information technology stocks were among the top performers.

The Dow Jones closed lower by around 197 points to 51,786.72 on Tuesday. The S&P 500 rose 0.36% to 7,568.92, while the Nasdaq Composite climbed 0.83% at 25,372.01 during Tuesday’s session.

Investors are awaiting earnings results from McDonald’s Corp (NYSE:MCD), Uber Technologies Inc (NYSE:UBER) and Qualcomm Inc (NASDAQ:QCOM) today.

What is CNN Business Fear & Greed Index?

At a current reading of 19, the index remained in the “Extreme Fear” zone on Tuesday, versus a prior reading of 19.

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 greed.

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