Fear & Greed Index Remains In 'Greed' Zone Following Inflation Data

The CNN Money Fear and Greed index remained in the "Greed" zone on Thursday.

U.S. stocks closed slightly higher on Thursday following the release of inflation data. All three major indexes climbed over 1% earlier in the session, but pared gains later on Thursday.

Annual inflation rate in the U.S. rose to 3.2% in July from 3% in June, but down from market estimates of 3.3%. The monthly inflation rate, however, held steady at 0.2% in July, matching market estimates.

Another report released Thursday showed that U.S. initial jobless claims increased by 21,000 from the previous week to 248,000 in the week ended August 5, sharply above market estimates of 230,000.

The Walt Disney Company DIS shares gained 4.9% on Thursday after the company reported better-than-expected third-quarter earnings. Wynn Resorts, Limited WYNN shares rose 2.6% after the company reported upbeat quarterly 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 Thursday morning, with around four-fifths of those topping market estimates.

Major sectors on the S&P 500 closed on a mixed note, with consumer discretionary and communication services stocks recording the biggest gains on Thursday. However, real estate and industrials stocks closed lower during the Thursday’s session.

The Dow Jones closed higher by around 53 points to 35,176.15 on Thursday. The S&P 500 rose 0.03% at 4,468.83, while the Nasdaq Composite added 0.12% at 13,737.99 during the session.

Investors are awaiting earnings results from Spectrum Brands Holdings, Inc. SPB, Mammoth Energy Services, Inc. TUSK and Soho House & Co Inc. SHOC today.

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

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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