Investor Optimism Improves Further As Investors Assess Economic Reports

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

U.S. stocks closed higher on Wednesday, with the S&P 500 recording gains for the fourth straight session.

Shares of HP Inc.. HPQ fell 6.6% on Wednesday after the company issued FY23 adjusted EPS guidance below estimates.

On the economic data front, the U.S. economy expanded at an annualized pace of 2.1% in the second quarter of 2023, versus the preliminary reading of 2.4% and compared to the first quarter's growth of 2.0%. Private businesses in the U.S. added 177,000 workers in August, missing market estimates of a 195,000 rise and compared to a revised 371,000 gain in July.

Majority of sectors on the S&P 500 closed on a positive note, with information technology and energy stocks recording the biggest gains on Wednesday. However, utilities and health care stocks bucked the overall market trend, closing lower during the session.

The Dow Jones closed higher by around 38 points to 34,890.24 on Wednesday. The S&P 500 rose 0.38% at 4,514.87, while the Nasdaq Composite added 0.54% at 14,019.31 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 51.2, the index remained in the "Neutral" zone on Tuesday, compared to a previous reading of 50.3.

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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