Photo by Spencer Platt.
The market has fallen due to a steep sell-off in tech stocks.
CNN's Fear & Greed Index and AAII's Investor Sentiment show a split between bulls and bears.
The S&P 500 is 2% below its record highs, but some high-flying tech stocks are down more than 50%.
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After a steep sell-off in technology stocks led to a decline in broader indicators like the S&P 500, investors are split on where the stock market goes from here.
CNN's Fear and Greed Index was in the neutral zone at 50 on Thursday, even after the Federal Reserve minutes caused a sell-off in the stock market.
The AAII's most recent investment survey shows that bulls and bears were tied at 33% for the week ending January 5. The bull reading in the previous week was 38%.
Concerns of rising interest rates and a hawkish Fed have caused both sentiment indicators to fall over the past week. The earliest rate hike will be in March. Last year, investors only expected two interest rate hikes.
The lack of investor enthusiasm in either direction for the stock market is rare, even though the S&P 500 is 2% below its record high. Typically, traders look at sentiment readings to generate contrarian trade signals as they try to pull away from the crowd. There is no signal to be traded.
As investors gain a better understanding of when and how much the Fed plans to raise interest rates, all of that could change. Tech stocks have been hurt over the past year by that, best illustrated by the performance of Ark Invest's flagship exchange traded fund.
If the Fed's December minutes were more bark than bite, it could lead to a huge recovery rally in tech stocks and help drive the stock market higher.
Business Insider has an original article.
