The CNN Money Fear and Greed index showed some improvement in the overall market sentiment, while the index moved to the “Extreme Greed” zone on Wednesday.
U.S. stocks settled higher on Wednesday, with the Dow Jones index gaining more than 200 points during the session as investors shrugged off fresh trade uncertainty after the White House delayed the start of new tariffs to Aug. 1, raising hopes for new rounds of negotiations.
Nvidia Corp. (NASDAQ:NVDA) grabbed headlines once again, with its market capitalization hitting $4 trillion, solidifying its lead as the world’s most valuable company. According to the Financial Times, Nvidia is planning to launch a new AI chip designed specifically for China as soon as September.
On the economic data front, U.S. wholesale inventories declined by 0.3% month-over-month to $905.5 billion in May in line with the preliminary estimate and compared to a 0.1% increase in the previous month.
Most sectors on the S&P 500 closed on a positive note, with information technology, utilities 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 218 points to 44,458.30 on Wednesday. The S&P 500 rose 0.61% to 6,263.26, while the Nasdaq Composite gained 0.94% to 20,611.34 during Wednesday’s session.
Investors are awaiting earnings results from Conagra Brands, Inc. (NYSE:CAG), Delta Air Lines Inc. (NYSE:DAL) and Helen of Troy Limited (NASDAQ:HELE) today.
What is CNN Business Fear & Greed Index?
At a current reading of 75, the index moved to the “Extreme Greed” zone on Wednesday, versus a prior reading of 74.
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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