If you're feeling nervous about the stock market right now, you're not alone. The CNN Money Fear and Greed Index slipped further into "Extreme Fear" territory on Tuesday, clocking in at 11.3 compared to the previous reading of 12.7. That's nowhere near the kind of sentiment that fuels market rallies.
Wall Street had a rough day as investors braced for Nvidia Corp. (NVDA)'s earnings report on Wednesday. The Nasdaq Composite took the biggest hit, declining 1.21% to close at 22,432.85. The Dow Jones wasn't spared either, dropping around 499 points to settle at 46,091.74. The S&P 500 fell 0.83% to 6,617.32 during Tuesday's session.
Why all the anxiety? Part of it comes down to Nvidia's outsized influence on market sentiment. The chipmaker's earnings have become something of a referendum on AI spending and tech sector health. But there's more going on beneath the surface.
Federal agencies are expected to release delayed key economic indicators later this week, data that could significantly influence expectations around Federal Reserve policy. When you're trying to figure out where interest rates are headed and the government data you need keeps getting pushed back, it's no wonder investors get jittery.
Corporate Earnings Paint a Mixed Picture
On the earnings front, results were all over the map. Medtronic Plc (MDT) delivered strong second-quarter fiscal 2026 results on Tuesday, offering a bright spot. Meanwhile, Home Depot Inc. (HD) reported third-quarter adjusted earnings that missed expectations and lowered its full-year fiscal 2025 adjusted EPS outlook—not exactly the news investors wanted to hear from the home improvement giant.
Most sectors on the S&P 500 actually closed positive, with energy, health care, and real estate stocks posting the biggest gains. However, consumer discretionary and information technology stocks dragged the index down, reflecting concerns about consumer spending and tech valuations.
Economic Data and What's Next
On the economic front, U.S. initial jobless claims came in at 232,000 for the week ending October 18. Meanwhile, U.S. private employers announced an average of 2,500 job cuts per week in the four weeks ending November 1, compared to an 11,250 decline in the previous period.
Looking ahead, investors are waiting on earnings from Nvidia, Target Corp. (TGT), and Lowe's Companies Inc. (LOW) today. These reports could either calm nerves or send fear levels even higher.
Understanding the Fear and Greed Index
For those unfamiliar, the Fear and Greed Index measures current market sentiment based on a simple premise: fear puts downward pressure on stock prices, while greed does the opposite. The index is calculated using seven equal-weighted indicators and ranges from 0 to 100, where 0 represents maximum fear and 100 signals maximum greed. At 11.3, we're definitely in the fearful camp right now.