The CNN Money Fear and Greed index showed some improvement in the overall market sentiment, while the index remained in the “Fear” zone on Wednesday.
U.S. stocks settled higher on Wednesday, with the S&P 500 recording gains for the fifth straight session following the release of inflation data.
On the economic data front, headline CPI inflation fell from 3% in June to 2.9% in July 2024 on a year-over-year basis, falling short of the consensus forecast of 3% tracked by TradingEconomics. On a monthly basis, inflation increased by 0.2% in July, rebounding from the previous month's contraction of 0.1% and matching estimates of 0.2%.
Shares of Mercury Systems, Inc. MRCY jumped around 18% on Wednesday after the company reported better-than-expected fourth-quarter financial results. Performance Food Group Company PFGC shares gained around 8% on Wednesday following the release of quarterly results.
Most sectors on the S&P 500 closed on a positive note, with financials, information technology and energy stocks recording the biggest gains on Wednesday. However, communication services and consumer discretionary stocks bucked the overall market trend, closing the session lower.
The Dow Jones closed higher by around 243 points to 40,008.39 on Wednesday. The S&P 500 rose 0.38% to 5,455.21, while the Nasdaq Composite gained 0.03% at 17,192.60 during Wednesday's session.
Investors are awaiting earnings results from Walmart Inc. WMT, Alibaba Group Holding Limited BABA, and Deere & Company DE today.
What is CNN Business Fear & Greed Index?
At a current reading of 26.1, the index remained in the “Fear” zone on Wednesday, versus a prior reading of 25.1.
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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