Investor Optimism Improves Further; S&P 500 Settles At Record High

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

U.S. stocks closed higher on Thursday, with the S&P 500 jumping to fresh highs during the session. The Dow Jones index also topped the 39,000 mark for the first time ever.

NVIDIA Corporation NVDA shares rose around 16.4% on Thursday after the company reported better-than-expected fourth-quarter financial results and issued first-quarter revenue guidance above estimates. Shares of Keurig Dr Pepper Inc. KDP fell around 3.9% on Thursday after the company released results for its fourth quarter.

On the economic data front, U.S. initial jobless claims fell by 12,000 to 201,000 in the week ending Feb. 17, compared to market estimates of 218,000. The S&P Global flash manufacturing PMI climbed to 51.5 in February from 50.7 in January, while services PMI fell to 51.3 in February from 52.5.

Most sectors on the S&P 500 closed on a higher note, with consumer discretionary, information technology and communication services stocks recording the biggest gains on Thursday. However, utilities stocks bucked the overall market trend, closing the session lower.

The Dow Jones closed higher by around 457 points to 39,069.11 on Thursday. The S&P 500 rose 2.11% at 5,087.03, while the Nasdaq Composite jumped 2.96% at 16,041.62 during Thursday’s session.

Investors are awaiting earnings results from Warner Bros. Discovery, Inc. WBD, Bloomin' Brands, Inc. BLMN, AerCap Holdings N.V. AER and Hyatt Hotels Corporation H today.

At a current reading of 78.5, the index remained in the "Extreme Greed" zone on Thursday, versus a prior reading of 75.6.

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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