Markets Turn More Bullish As Bank Shares Rise On Stress Test Results

The CNN Money Fear and Greed index showed further increase in overall sentiment among U.S. investors on Thursday.

Bank stocks moved higher on Thursday following the Fed's stress test results, which showed all 23 banks tested remained above their minimum capital requirements during a hypothetical recession. JPMorgan Chase & Co. JPM and The Goldman Sachs Group, Inc. GS shares each gained more than 3% on Thursday.

On the economic data front, U.S. initial jobless claims declined by 26,000 from the previous week's 20-month high level to 239,000 during the week ending June 24. The U.S. economy expanded by an annualized rate of 2% on quarter in the first quarter, higher than the 1.3% growth in the second estimate, and market expectations of 1.4%.

The Dow Jones closed higher by around 270 points to 34,122.42 on Thursday. The S&P 500 rose 0.45% at 4,396.44, while the Nasdaq Composite closed almost flat at 13,591.33 during the session.

Investors are awaiting earnings results from Constellation Brands, Inc. STZ and Biotricity, Inc. BTCY today.

At a current reading of 80.0, the index remained in the "Extreme Greed" zone, versus a previous reading of 77.0

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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