The CNN Money Fear and Greed index showed further improvement in the overall market sentiment, while the index moved to the “Greed” zone on Wednesday.
U.S. stocks settled mostly higher on Wednesday, with the S&P 500 and Nasdaq Composite surging to fresh all-time highs.
President Donald Trump said Wednesday the conflict was “very close to over,” adding that oil prices would “come dropping down.”
In earnings, Morgan Stanley (NYSE:MS) posted better-than-expected earnings for the first quarter. $Bank of America Corp(BAC-N)$ (NYSE:BAC) reported upbeat earnings for the first quarter on Wednesday.
On the economic data front, U.S. import prices rose by 0.8% month-over-month in March compared to a revised 0.9% gain in February. U.S. export prices increased by 1.6% month-over-month in March following a revised 1.9% gain in February. The NY Empire State Manufacturing Index surged to 11 in April, recording the highest reading in five months, up from -0.2 in the previous month and beating market estimates of -0.5.
Most sectors on the S&P 500 closed on a negative note, with materials, industrials and utilities stocks recording the biggest losses on Wednesday. However, information technology and consumer discretionary stocks closed the session higher.
The Dow Jones closed lower by around 72 points to 48,463.72 on Wednesday. The S&P 500 surged 0.80% to 7,022.95, while the Nasdaq Composite jumped 1.59% at 24,016.02 during Tuesday's session.
Investors are awaiting earnings results from PepsiCo Inc (NASDAQ:PEP), Netflix Inc (NASDAQ:NFLX) and Abbott Laboratories (NYSE:ABT) today.
At a current reading of 56.5, the index moved to the “Greed” zone on Wednesday, versus a prior reading of 49.1.
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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