Investor Sentiment Increases Further Following GDP Report; S&P 500 Gains For Sixth Day

The CNN Money Fear and Greed index showed further increase in overall market sentiment, while the index remained in the "Extreme Greed" zone on Thursday.

U.S. stocks closed higher on Thursday, with the S&P 500 recording gains for the sixth consecutive day and notching another all-time closing record.

Tesla, Inc. TSLA shares dipped more than 12% on Thursday after the company reported worse-than-expected fourth-quarter financial results. Shares of American Airlines Group Inc AAL gained more than 10% on Thursday reported better-than-expected fourth-quarter results.

On the economic data front, the U.S. economy grew an annualized 3.3% in the fourth quarter, versus market estimates of a 2% rise, and compared to a 4.9% rate in the prior quarter. U.S. initial jobless claims increased by 25,000 to 214,000 in the week ending Jan. 20. New orders for manufactured durable goods in the U.S. came in unchanged for December.

Most sectors on the S&P 500 closed on a positive note, with energy, communication services and utilities stocks recording the biggest gains on Thursday. However, consumer discretionary and health care stocks bucked the overall market trend, closing the session lower.

The Dow Jones closed higher by around 243 points to 38,049.13 on Thursday. The S&P 500 rose 0.53% at 4,894.16, while the Nasdaq Composite rose 0.18% at 15,510.50 during Thursday’s session.

Investors are awaiting earnings results from Booz Allen Hamilton Holding Corporation BAH, Colgate-Palmolive Company CL, American Express Company AXP and Norfolk Southern Corporation NSC today.

At a current reading of 77.3, the index remained in the "Extreme Greed" zone on Thursday, versus a prior reading of 76.

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.

Read Next: Jim Cramer: This Healthcare Stock Is 'Too Risky,' But Shares Jumped 64% Over Past Month