S&P 500's 3-Day Losing Streak Ends Following Jump In Tesla Shares: Investor Sentiment Improves, Fear Index Remains In 'Greed' Zone

The CNN Money Fear and Greed index showed an improvement in the overall market sentiment, while the index remained in the “Greed” zone on Thursday.

U.S. stocks settled mixed on Thursday, with the S&P 500 recording its first positive session in a week.

Tesla Inc. TSLA was the top-performing stock in the index. Shares of the company jumped around 22% on Thursday after reporting stronger-than-expected third-quarter earnings. International Business Machines Corp. IBM shares fell 6.2% following a third-quarter revenue miss.

On the economic data front, U.S. initial jobless claims declined by 15,000 from the prior week to 227,000 during the period ending Oct. 19, compared to market estimates of 242,000. The S&P Global flash manufacturing PMI rose to 47.8 in October versus a 15-month low level of 47.3 in September, while services PMI increased to 55.3 in October from 55.2 in the prior month.

Most sectors on the S&P 500 closed on a negative note, with materials, industrials, and utilities stocks recording the biggest losses on Thursday. However, consumer discretionary and communication services stocks bucked the overall market trend, closing the session higher.

The Dow Jones closed lower by around 141 points to 42,374.36 on Thursday. The S&P 500 rose 0.21% to 5,809.86, while the Nasdaq Composite climbed 0.76% to close at 18,415.49 during Thursday's session.

Investors are awaiting earnings results from AutoNation, Inc. AN, Colgate-Palmolive Company CL, and HCA Healthcare, Inc. HCA today.

What is CNN Business Fear & Greed Index?

At a current reading of 63.4, the index remained in the “Greed” zone on Thursday, versus a prior reading of 62.3.

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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