S&P 500 Settles Above 5,600 For First Time Ahead Of Inflation Data, Fear Index Moves To 'Greed' Zone

The CNN Money Fear and Greed index showed an improvement in overall market sentiment, with the index moving to the “Greed” zone on Wednesday.

U.S. stocks closed higher on Wednesday, with the S&P 500 surging past the 5,600 mark for the first time. The Nasdaq Composite also jumped to an all-time high during the session.

On the economic data front, U.S. wholesale inventories increased by 0.6% month-over-month in May compared to a 0.2% gain in the previous month. Data on consumer price index for June will be released today, while producer price index data will be released on Friday.

Taiwan Semiconductor Manufacturing Company Limited TSM shares gained 3.5% on Wednesday after the company reported June net revenue, which rose 32.9% year over year. LegalZoom.com, Inc. LZ shares tumbled over 25% after the company announced a CEO transition and lowered its full-year guidance.

All sectors on the S&P 500 closed on a positive note, with information technology, health care, and materials stocks recording the biggest gains on Wednesday.

The Dow Jones closed higher by around 430 points to 39,721.36 on Wednesday. The S&P 500 rose 1.02% at 5,633.91, while the Nasdaq Composite climbed 1.18% at 18,647.45 during Wednesday's session.

Investors are awaiting earnings results from PepsiCo, Inc. PEP, Delta Air Lines, Inc. DAL, and Conagra Brands, Inc. CAG today.

Big banks, including, Citigroup C and JPMorgan Chase JPM are scheduled to report second-quarter earnings on Friday.

What is CNN Business Fear & Greed Index?

At a current reading of 57.8, the index moved to the “Greed” zone on Wednesday, versus a prior reading of 54.3.

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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