S&P 500 Falls for Second Session Ahead of Inflation Report: Investor Sentiment Weakens, Fear & Greed Index Remains in ‘Greed’ Zone

Key takeaways

• The S&P 500 falls for the second session ahead of the inflation report, with investor sentiment weakening and the Fear & Greed Index remaining in the 'Greed' zone.
• S&P 500 fell 0.32% to 7,728.20
• Dow Jones closed lower by around 184 points to 53,791.85
• Nasdaq Composite declined 0.60% to 26,445.45

What happened

The S&P 500 fell for the second straight session, with the Dow Jones closing lower by around 184 points to 53,791.85 on Tuesday.

Why it matters

The decline in the S&P 500 comes ahead of the inflation report on Wednesday, with markets expecting headline inflation to cool to 3.4% from 3.5%.

Short-term and longer-term

Short-term. The decline in the S&P 500 ahead of the inflation report suggests that traders should be cautious about the market's reaction to the report, with the Fear & Greed Index remaining in the 'Greed' zone at 60.7.

Longer-term. Over the next few months, ask whether this changed growth, prices, or the path of interest rates.