Investor Sentiment Improves As US Stocks Record Gains
The CNN Money Fear and Greed index showed an improvement in overall market sentiment, while the index remained in the "Greed" zone on Wednesday.
U.S. stocks closed higher on Wednesday, as yield on the 10-year Treasury declined to its lowest level in two months.
NVIDIA Corporation (NASDAQ:NVDA) shares fell 2.5% on Wednesday despite better-than-expected third-quarter earnings and strong guidance. Shares of Deere & Co (NYSE:DE) fell around 3% on Wednesday after the company posted results for its fourth quarter.
On the economic data front, U.S. initial jobless claims declined by 24,000 to 209,000 on the week ending Nov. 18, compared to market expectations of 225,000. U.S. durable goods orders fell by 5.4% month-over-month in October following a 4.0% increase in September.
U.S. stock markets were closed Thursday for the Thanksgiving holiday and will also close early on Black Friday.
Most sectors on the S&P 500 closed on a positive note, with communication services and consumer staples stocks recording the biggest gains on Wednesday. However, energy stocks bucked the overall market trend, closing the session lower.
The Dow Jones closed higher by around 185 points to 35,273.03 on Wednesday. The S&P 500 rose 0.41% at 4,556.62, while the Nasdaq Composite gained 0.46% at 14,265.86 during Wednesday’s session.
U.S. major indices are all still on course to record monthly gains, as the Dow has gained around 7%, and the S&P 500 climbed over 8% during the period.
Investors are awaiting earnings results from H World Group Limited (NASDAQ:HTHT) and Jianpu Technology Inc. (NYSE:JT) today.
At a current reading of 67.4, the index remained in the "Greed" zone on Wednesday, versus a prior reading of 65.4.
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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