Traders More Optimistic Following Fed's Rate Decision

The CNN Money Fear and Greed index showed some improvement in overall sentiment among U.S. investors on Wednesday.

U.S. stocks closed mixed on Wednesday after the Federal Reserve paused its rate-hiking campaign. The central bank, meanwhile, signalled it would increase rates by another two times this year. The Fed is scheduled to hold its next meeting on July 25-26.

Lennar Corporation LEN reported better-than-expected earnings results for its second quarter.

The Dow Jones closed lower by around 233 points to 33,979.33 on Wednesday. The S&P 500 rose 0.08% at 4,372.59, while the Nasdaq Composite added 0.39% to settle at 13,626.48 during the session.

Investors are awaiting earnings results from The Kroger Co. KR, Jabil Inc. JBL and Adobe Inc. ADBE today.

At a current reading of 81.0, the index remained in the "Extreme Greed" zone, versus a previous reading of 80.0

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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