The CNN Money Fear and Greed index showed an improvement in the overall market sentiment, while the index remained in the “Fear” zone on Thursday.
U.S. stocks settled higher on Thursday, with the Dow Jones index gaining more than 600 points during the session. The Nasdaq Composite also ended its six-session losing streak.
Microsoft Corp. (NASDAQ:MSFT) surged 15.5% after reporting 43% cloud revenue growth – its fastest since 2022 – alongside capital expenditure guidance that did not outpace expectations. Meta Platforms Inc. (NASDAQ:META), however, dipped 8% after guidance missed and investors questioned when its AI labs will convert into revenue.
On the economic data front, second-quarter GDP growth slowed to an annualized 1.5% from 2.1%, well below the 2.1% consensus, while the June PCE price index fell 0.1% month-over-month and core PCE rose just 0.1%, undershooting forecasts. U.S. initial jobless claims rose by 9,000 to 197,000 in the week ending July 25, compared to market expectations of 200,000.
Most sectors on the S&P 500 closed on a positive note, with industrials, information technology and consumer discretionary stocks recording the biggest gains on Thursday. However, communication services and consumer staples stocks bucked the overall market trend, closing the session lower.
The Dow Jones closed higher by around 614 points to 52,208.06 on Thursday. The S&P 500 climbed 1.66% to 7,437.63, while the Nasdaq Composite jumped 2.78% at 25,122.18 during Thursday’s session.
Investors are awaiting earnings results from Chevron Corp. (NYSE:CVX), ExxonMobil Holdings Corp. (NYSE:XOM) and Colgate-Palmolive Co. (NYSE:CL) today.
What is CNN Business Fear & Greed Index?
At a current reading of 39, the index remained in the “Fear” zone on Thursday, versus a prior reading of 38.
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
Recent Comments