The CNN Money Fear and Greed index showed an improvement in the overall market sentiment, while the index moved to the “Neutral” zone on Wednesday.
U.S. stocks settled higher on Wednesday, with the Nasdaq Composite gaining more than 1% during the session, driven by gains in mega-cap tech and AI-linked names. Software stocks extended their rebound for a second straight session, making the group the top-performing industry.
In earnings, CAVA Group Inc. (NYSE:CAVA) jumped over 26% after the company reported better-than-expected quarterly financial results, while Everus Construction Group Inc. (NYSE:ECG) advanced almost 25%. Lowe's Companies Inc. (NYSE:LOW) reported upbeat earnings for the fourth quarter but issued weak earnings guidance.
On the economic data front, the volume of mortgage applications in the US increased by 0.4% from the previous week during the third week of February, compared to a 2.8% gain in the earlier period.
Most sectors on the S&P 500 closed on a negative note, with consumer staples, real estate and industrials stocks recording the biggest losses on Wednesday. However, information technology and financial stocks closed the session higher.
The Dow Jones closed higher by around 308 points to 49,482.15 on Wednesday. The S&P 500 rose 0.81% to 6,946.13, while the Nasdaq Composite gained 1.26% at 23,152.08 during Wednesday's session.
Investors are awaiting earnings results from Hormel Foods Corp. (NYSE:HRL), J M Smucker Co. (NYSE:SJM) and Dell Technologies Inc. (NYSE:DELL) today.
What Is CNN Business Fear & Greed Index?
At a current reading of 46, the index moved to the “Neutral” zone on Wednesday, versus a prior reading of 43.3.
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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