Investor Optimism Improves Ahead of Apple, Amazon Earnings

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

U.S. stocks closed lower on Wednesday, with the Nasdaq Composite recording its worst session since February, after Fitch downgraded the long-term credit rating of the U.S.

As far as the earnings season is concerned, out of the S&P 500 companies that have released quarterly results so far, around 82% exceeded market estimates.

CVS Health Corporation CVS shares gained 3.3% on Wednesday after the company reported better-than-expected second-quarter financial results and issued FY23 guidance. Humana Inc. HUM shares gained 5.6% after the company reported upbeat second-quarter earnings and reported a 15.7% increase in individual Medicare Advantage enrollment.

The Dow Jones closed lower by around 348 points to 35,282.52 on Wednesday. The S&P 500 fell 1.38% at 4,513.39, while the Nasdaq Composite lost 2.17% at 13,973.45 during the session.

Investors are awaiting earnings results from Amazon.com, Inc. AMZN, Apple Inc. AAPL and Kellogg Company K today.

At a current reading of 73.0, the index remained in the "Greed" zone, versus a previous reading of 71.0

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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