The CNN Money Fear and Greed index showed some easing in the overall fear level, while the index remained in the “Fear” zone on Wednesday.

U.S. stocks settled higher on Wednesday, with the Nasdaq Composite gaining more than 1% during the session as traders weighed reports of potential U.S.-Iran diplomatic talks.

The dominant catalyst was a premarket headline from the New York Times suggesting the two sides could pursue diplomatic dialogue.

In earnings, shares of Abercrombie & Fitch Co. (NYSE:ANF) fell around 4% on Wednesday after the company posted earnings for the fourth quarter. Latham Group Inc. (NASDAQ:SWIM) shares jumped 12% after the company reported better-than-expected fourth-quarter financial results and issued FY26 sales guidance above estimates.

On the economic data front, U.S. private businesses added 63,000 jobs in February, the most since July, compared to a revised 11,000 gain in the previous month and above market estimates of 50,000. The ISM services PMI climbed to 56.1 in February from 53.8 in the previous month and topping market estimates of 53.5.

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

The Dow Jones closed higher by around 238 points to 48,739.41 on Wednesday. The S&P 500 gained 0.78% to 6,869.50, while the Nasdaq Composite climbed 1.29% at 22,807.48 during Wednesday's session.

Investors are awaiting earnings results from Kroger Co. (NYSE:KR), Costco Wholesale Corp. (NASDAQ:COST) and BJ’s Wholesale Club Holdings Inc. (NYSE:BJ) today.

What is CNN Business Fear & Greed Index?

At a current reading of 37.3, the index remained in the “Fear” zone on Wednesday, versus a prior reading of 33.2.

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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