Nasdaq Jumps Over 300 Points Amid Surge In Chip Stocks: Investor Sentiment Improves, Greed Index Remains In ‘Fear’ Zone

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

U.S. stocks settled mostly higher on Tuesday, with the Nasdaq Composite gaining more than 300 points during the session amid gains in chip stocks.

A decline in crude oil prices also lent support to market sentiment. Iranian military officials reportedly met with Saudi, Turkish and Pakistani officials in Tehran on Monday.

On the earnings front, Pentair PLC (NYSE:PNR) rallied around 13% after third-quarter sales beat estimates on growth in its water solutions business. The Coca-Cola Co. (NYSE:KO) reported better-than-expected earnings for the third quarter and raised its earnings guidance.

On the economic data front, the Conference Board’s consumer confidence index jumped to 91.7 in October from 84.2 in September, well above the 81 economists expected. Durable goods orders rose 1.8% in September, beating the 1.5% forecast. The S&P Cotality Case-Shiller Home Price Index increased 2.7% year-over-year in August, topping market estimates of 2.5%.

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

The Dow Jones closed higher by around 16 points to 52,377.57 on Tuesday. The S&P 500 rose 0.60% to 7,722.60, while the Nasdaq Composite gained 1.18% at 26,477.81 during Tuesday’s session.

Investors are awaiting earnings results from Microsoft Corp (NASDAQ:MSFT), Alphabet Inc (NASDAQ:GOOGL) (NASDAQ:GOOG) and GE Vernova Inc (NYSE:GEV) today.

At a current reading of 34, the index remained in the “Fear” zone on Tuesday, versus a prior reading of 30.

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.

Photo via Shutterstock