S&P 500 Notches Record High For 4th Day, Market Sentiment Dips To 'Fear' Zone Following PPI Report
The CNN Money Fear and Greed index showed a decline in the overall market sentiment, with the index moving to the “Fear” zone on Thursday.
U.S. stocks settled mixed on Thursday, with the S&P 500 recording a fourth consecutive closing record.
On the economic data front, U.S. producer prices fell by 0.2% month-over-month in May versus market estimates of a 0.1% gain following a 0.5% increase in April. U.S. initial jobless claims rose by 13,000 to 242,000 in the week ending June 8, compared to market estimates of 225,000.
The Federal Reserve decided to keep interest rates unchanged within the 5.25-5.50% range for the seventh consecutive meeting on Wednesday but indicated fewer potential rate cuts ahead.
Shares of Signet Jewelers Limited (NYSE:SIG) fell around 15% during Thursday's session following mixed first-quarter earnings including an 8.9% drop in same-store sales. Shares of Broadcom Inc. (NASDAQ:AVGO) gained more than 12% after the company posted stronger-than-expected results for its second quarter and also announced a 10-for-1 forward stock split.
Most sectors on the S&P 500 closed on a negative note, with communication services, energy, and industrial stocks recording the biggest losses on Thursday. However, information technology and real estate stocks bucked the overall market trend, closing the session higher.
The Dow Jones closed lower by around 65 points to 38,647.10 on Thursday. The S&P 500 rose 0.23% at 5,433.74, while the Nasdaq Composite climbed 0.34% at 17,667.56 during Thursday's session.
At a current reading of 43, the index moved to the “Fear” zone on Thursday, versus a prior reading of 45.9.
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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