S&P 500 Rises Over 1% as Santa Rally Begins, Tesla and Nvidia Perform Well

The CNN Money Fear and Greed index reflected an improvement in market sentiment, decreasing slightly in the fear level, though it still falls within the "Fear" zone as of Tuesday.

On Christmas Eve, U.S. stocks experienced a notable increase, with the S&P 500 rising by more than 1%. Tesla Inc. (TSLA) saw its shares gain over 7%, while Nvidia Corp. (NVDA) experienced a modest increase of 0.4% during the trading session.

The New York Stock Exchange had an early close on Tuesday due to Christmas Eve and remained closed on Wednesday for Christmas Day.

From an economic perspective, the U.S. Redbook index reported a 5.9% increase year-over-year for the latest week, up from a previous reading of 4.8%. Additionally, the composite manufacturing index in the U.S. Fifth District improved to -10 in December, compared to a reading of -14 the month before.

All sectors within the S&P 500 finished in positive territory, with consumer discretionary, financial, and information technology stocks securing the most significant gains on Tuesday.

The Dow Jones Industrial Average rose by approximately 390 points, closing at 43,297.03. The S&P 500 gained 1.10%, reaching 6,040.04, while the Nasdaq Composite saw an increase of 1.35%, ending at 20,031.13.

Understanding the CNN Money Fear & Greed Index

As of the latest assessment, the CNN Money Fear and Greed Index registered a reading of 34, indicating a lingering presence in the "Fear" zone, a slight improvement from the previous reading of 29.6.

This index acts as a gauge for current market sentiment, based on the understanding that heightened levels of fear typically exert downward pressure on stock prices, while elevated levels of greed can boost them. The index is derived from seven equal-weighted indicators and ranges from 0 to 100, where 0 signifies extreme fear and 100 indicates extreme greed.

Market Overview

The recent uptick in the S&P 500 and the impressive performances of key players such as Tesla and Nvidia suggest a positive outlook, despite the prevailing fear noted in the index. Investors will be closely watching future economic indicators and market trends as the holiday season progresses.

stocks, santa, fear