The CNN Money Fear and Greed index showed a decline in the overall market sentiment, while the index moved to the “Neutral” zone on Wednesday.

U.S. stocks settled lower on Wednesday, with the Nasdaq Composite falling 1% during the session as investors remained cautious ahead of a closely watched Supreme Court ruling on the legality of President Donald Trump‘s tariffs.

Chip stocks were among the biggest losers, with shares of Broadcom Inc. (NASDAQ:AVGO), Nvidia Corp. (NASDAQ:NVDA) and Micron Technology Inc. (NASDAQ:MU) settling lower on Wednesday.

On the earnings front, Bank of America Corp. (NYSE:BAC) and Citigroup Inc. (NYSE:C) closed lower despite reporting upbeat quarterly results.

On the economic data front, U.S. retail sales increased 0.6% month-over-month in November, recording the largest surge since July, compared to a revised 0.1% drop in October. The U.S. current account deficit shrank by 9.2% to $226.4 billion in the third quarter, versus market estimates of a $238 billion gap. U.S. producer prices increased 0.2% month over month in November, following a 0.1% growth in October and in line with market expectations.

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

The Dow Jones closed lower by around 42 points to 49,149.63 on Wednesday. The S&P 500 fell 0.53% to 6,926.60, while the Nasdaq Composite dipped 1% at 23,471.75 during Wednesday's session.

Investors are awaiting earnings results from Goldman Sachs Group Inc. (NYSE:GS), Morgan Stanley (NYSE:MS) and BlackRock Inc. (NYSE:BLK) today.

What Is CNN Business Fear & Greed Index?

At a current reading of 55, the index moved to the “Neutral” zone on Wednesday, versus a prior reading of 59.5.

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.

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