Investor Fears Ease Further Ahead Of More Inflation Data: Here's Why

The CNN Money "Fear and Greed" index showed further easing in the fear level, but the index remained in the "Fear" zone on Wednesday.

U.S. stocks settled higher on Wednesday as investors awaited the release of the consumer price index, due to be released on Thursday. Economists are expecting consumer prices to rise 0.3% from the prior month in September.

Data released Wednesday showed producer prices in the U.S. increasing 0.5% month-over-month in September, versus a 0.7% rise in the prior month, but above market expectations of 0.3%.

The yield on the 10-year Treasury note fell around 9 basis points during Wednesday’s session.

Exxon Mobil Corporation XOM shares fell around 3.6% on Wednesday after it signed a definitive agreement to acquire Pioneer Natural Resources Company PXD in an all-stock transaction valued at $59.5 billion, or $253 per share.

Most sectors on the S&P 500 closed on a positive note, with real estate and utilities stocks recording the biggest gains on Wednesday. However, energy and consumer staples stocks bucked the overall market trend, closing the session lower.

The Dow Jones closed higher by around 66 points to 33,804.87 on Wednesday. The S&P 500 rose 0.43% at 4,376.95, while the Nasdaq Composite gained 0.71% at 13,659.68 during Tuesday’s session.

Investors are awaiting earnings results from Walgreens Boots Alliance, Inc. WBA, Delta Air Lines, Inc. DAL, and Domino's Pizza, Inc. DPZ today.

At a current reading of 33.2, the index remained in the "Fear" zone on Wednesday, compared to a previous reading of 31.5.

What is the 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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