The CNN Money Fear and Greed index showed some easing in the fear level among US investors following the release of inflation data.
The Labor Department, on Thursday, reported an 8.2% year-over-year increase in the consumer price index for September, a potential sign that the Fed will continue to be aggressive in its fight against runaway inflation. On a month-over-month basis, CPI was up 0.4% versus average economist estimates for a 0.2% jump.
The Dow jumped 2.83% to close at 30,038.72 on Thursday, while the S&P 500 rose 2.60% to 3,669.91, ending a six-session losing streak as gains in energy and banking shares provided a boost to the markets.
The Nasdaq Composite rose 2.23% to settle at 10,649.15 in the previous session.
Big banks, including JPMorgan Chase & Co. JPM, Morgan Stanley MS Wells Fargo & Company WFC, and Citigroup Inc. C, will release their quarterly earnings today.
At a current reading of 23.0, the index remained in the "extreme fear" zone, following a previous reading of 19.0.
What is CNN Business Fear & Greed Index?
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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