Investor Sentiment Improves Ahead Of PCE Data; Dow Jumps Over 300 Points

The CNN Money Fear and Greed index showed an improvement in overall market sentiment, while the index remained in the "Greed" zone on Thursday.

U.S. stocks closed higher on Thursday, with the S&P 500 index rebounding from its worst session since September.

On the economic data front, U.S. initial jobless claims rose by 2,000 to 205,000 in the week ending Dec. 16, compared to market expectations of 215,000. The U.S. economy grew an annualized 4.9% in the third quarter, down from 5.2% in the second estimate, matching the 4.9% reading in the advance estimate.

Data on the US core PCE price index, the Fed’s preferred gauge to measure inflation, will be released today.

Micron Technology, Inc. MU shares gained around 8.6% on Thursday after the company reported mixed first-quarter financial results and issued strong guidance. Shares of CarMax, Inc. KMX gained over 5% during Thursday’s session following better-than-expected quarterly earnings.

All sectors on the S&P 500 closed on a positive note, with health care, communication services, and consumer discretionary stocks recording the biggest gains on Thursday.

The Dow Jones closed higher by around 322 points to 37,404.35 on Thursday. The S&P 500 rose 1.03% at 4,746.75, while the Nasdaq Composite jumped 1.26% at 14,963.87 during Thursday’s session.

At a current reading of 74, the index remained in the "Greed" zone on Thursday, versus a prior reading of 71.

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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