The CNN Money Fear and Greed index showed some improvement in the overall market sentiment, while the index moved to the “Neutral” zone on Thursday.

U.S. stocks settled higher on Thursday following strong earnings reports from two Big Tech companies. The S&P 500 recorded gains for the eighth day — its longest winning streak since November 2023.

Microsoft Corp. (NASDAQ:MSFT) shares jumped 7.6% on Thursday after delivering a blowout quarter that beat expectations across the board, reinforcing its leadership in cloud and AI. Meta Platforms Inc. (NASDAQ:META) shares gained 4.2% after the company topped estimates.

President Trump reassured investors, stating that progress on trade negotiations is going “very well” and that the timeline for the tax bill remains on schedule.

However, the Dow and S&P 500 recorded losses for the third consecutive month as economic data began reflecting the impact of Trump tariffs. The S&P 500 fell around 0.8% in April, while the Dow tumbled 3.2% for the period. The Nasdaq, however, gained 0.9% for the month.

On the economic data front, U.S. construction spending fell by 0.5% month-over-month to an annual rate of $2,196.1 billion in March. The ISM manufacturing PMI declined to 48.7 in April compared to 49.0 in March, above market estimates of 48. U.S. initial jobless claims increased by 18,000 to 241,000 in the week ending April 26, compared to market estimates of 224,000.

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

The Dow Jones closed higher by around 84 points to 40,752.96 on Thursday. The S&P 500 gained 0.63% to 5,604.14, while the Nasdaq Composite climbed 1.52% to 17,710.74 during Thursday's session.

Investors are awaiting earnings results from Chevron Corporation (NYSE:CVX), Exxon Mobil Corporation (NYSE:XOM) and Eaton Corporation plc (NYSE:ETN) today.

At a current reading of 46.9, the index moved to the “Neutral” zone on Thursday, versus a prior reading of 42.7.

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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