Investor Optimism Improves; But Dow Falls For Third Session

The CNN Money Fear and Greed index showed some improvement in overall market sentiment on Wednesday, but it remained in the "Greed" zone.

U.S. stocks closed mixed on Wednesday, with the Dow Jones index recording losses for the third consecutive session.

On the economic data front, private businesses in the U.S. added 184,000 workers in March, compared to a revised 155,000 gain in February and topping market estimates of 148,000. The ISM services PMI declined to 51.4 in March, compared to February’s reading of 52.6 and market estimates of 52.7.

Intel Corporation INTC shares dipped more than 8% on Wednesday after the company disclosed its foundry segment had a $7 billion operating loss in 2023. Intel is scheduled to report first-quarter 2024 financial results on April 25, 2024. Acuity Brands, Inc AYI reported better-than-expected earnings for its second quarter.

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

The Dow Jones closed lower by around 43 points to 39,127.14 on Wednesday. The S&P 500 rose 0.11% at 5,211.49, while the Nasdaq Composite gained 0.23% at 16,277.46 during Wednesday’s session.

Investors are awaiting earnings results from Lamb Weston Holdings, Inc. LW, RPM International Inc. RPM and Conagra Brands, Inc. CAG today.

At a current reading of 61.7, the index remained in the "Greed" zone on Wednesday, versus a prior reading of 59.7.

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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