The CNN Money Fear and Greed index showed a sharp decline in the overall market sentiment, while the index remained in the “Fear” zone on Wednesday.
U.S. stocks settled lower on Wednesday, with the Dow Jones index dipping more than 1,100 points to record its worst decline since April 2025. Crude oil prices spiked on a fresh U.S.-Iran escalation. President Donald Trump threatened strikes against Iran in response to attacks on U.S. targets in Jordan.
The Federal Reserve left its benchmark interest rate unchanged at 3.50%–3.75% on Wednesday.
Micron Technology Inc. (NASDAQ:MU) and KLA Corp. (NASDAQ:KLAC) each fell around 10% during the session.
On the earnings front, General Dynamics Corp (NYSE:GD) posted better-than-expected second-quarter earnings. Procter & Gamble Co. (NYSE:PG) reported worse-than-expected fourth-quarter sales results and issued FY27 GAAP EPS guidance below estimates.
On the economic data front, the volume of mortgage applications declined by 6.4% from the previous week in the week ending July 24.
Most sectors on the S&P 500 closed on a negative note, with industrials, information technology and financial stocks recording the biggest losses on Wednesday. However, energy and consumer staples stocks bucked the overall market trend, closing the session higher.
The Dow Jones closed lower by around 1,153 points to 51,594.14 on Wednesday. The S&P 500 dipped 1.52% to 7,316.15, while the Nasdaq Composite declined 1.74% to 24,442.94 during Wednesday’s session.
Investors are awaiting earnings results from Apple Inc. (NASDAQ:AAPL), Amazon.com Inc. (NASDAQ:AMZN) and Bristol-Myers Squibb Co. (NYSE:BMY) today.
What is CNN Business Fear & Greed Index?
At a current reading of 32.3, the index remained in the “Fear” zone on Wednesday, versus a prior reading of 37.9.
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.
Photo via Shutterstock