The CNN Money Fear and Greed index showed that sentiment for US equities is inching from a “fear” reading towards the “extreme fear” zone.
Investors await the release of inflation data from the US today. The annual inflation is expected to accelerate further to 8.8% in June, from 8.6% in May, taking the rate to a fresh high since December of 1981. Monthly consumer prices are also expected to rise 1.1% in June, following a 1% increase in the previous month.
US markets moved lower again on Tuesday, with the Dow Jones index shedding more than 190 points in the session. Markets fear prospects of a rise in inflation forcing the US Federal Reserve to raise interest rates by as much as 75 basis points this month.
The emergence of a new Omicron subvariant in China also impacted overall market sentiment on Tuesday, with investors also awaiting earnings from big banks this week. Delta Air Lines, Inc. (NYSE:DAL) is scheduled to release earnings on Wednesday.
At a current reading of 26.0, the Fear and Greed index has deteriorated from 27.0 reached on Tuesday. A further rise in the level of fear in markets will send the Fear and Greed index into the “Extreme Fear” territory, exerting more pressure on Wall Street stocks.
