Investor Sentiment Drops As Dow Records Loss For May

The CNN Money Fear and Greed index showed further decline in overall sentiment among U.S. investors on Wednesday.

U.S. stocks closed lower on Wednesday amid debt ceiling talks. The House passed the debt ceiling deal on Wednesday night. The bill now moves on to Senate.

The Dow closed lower by around 3.5% for the month, while the Nasdaq Composite added about 5.8%, driven by surge in AI-related stocks and other tech companies.

The Dow Jones closed lower by around 135 points to 32,908.27 on Wednesday. The S&P 500 fell 0.61% at 4,179.83, while the Nasdaq Composite dropped 0.63% to settle at 12,935.29 during the session.

Investors are awaiting earnings results from Dollar General Corporation DG, Broadcom Inc. AVGO and Hormel Foods Corporation HRL today.

At a current reading of 62.0, the index remained in the "Greed" zone, versus a previous reading of 65.0

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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