Investor Optimism Falls Ahead Of Inflation Data

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

U.S. stocks closed lower on Wednesday ahead of fresh inflation data. Data on consumer price index will be released on Thursday.

PENN Entertainment, Inc. PENN shares gained over 9% on Wednesday after the company reported better-than-expected second-quarter financial results and announced an exclusive U.S. online sports betting agreement with ESPN.

Roblox Corporation RBLX shares dipped around 22% after the company reported worse-than-expected second-quarter financial results.

As far as the earnings season is concerned, more than 90% of the S&P 500 companies have released quarterly results as of Wednesday, with around four-fifths of those exceeding market estimates.

Majority of sectors on the S&P 500 closed on a negative note, with information technology, consumer discretionary and communication services stocks recording the biggest losses on Wednesday. However, energy stocks closed sharply higher during the Wednesday’s session.

The Dow Jones closed lower by around 191 points to 35,123.36 on Wednesday. The S&P 500 fell 0.70% at 4,467.71, while the Nasdaq Composite lost 1.17% at 13,722.02 during the session.

Investors are awaiting earnings results from US Foods Holding Corp. USFD, Alibaba Group Holding Limited BABA and News Corporation NWSA today.

At a current reading of 67.0, the index remained in the "Greed" zone, versus a previous reading of 70.0

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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