The CNN Money Fear and Greed Index showed slight improvement in overall market sentiment, while the index remained in the “Fear” zone on Thursday.
U.S. stocks settled lower on Thursday, with the Nasdaq Composite falling more than 1% during the session. The S&P 500 also ended a three-day advance on Thursday.
On the earnings front, Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG) shares dipped over 12% on Thursday following weaker-than-expected earnings and revenue for the third quarter. Caterpillar Inc. (NYSE:CAT) also fell around 9% after reporting quarterly results.
On the economic data front, U.S. gross domestic product grew at a 3.4% annualized pace in the third quarter, above the 3.2% consensus and up from 2.2% in the second quarter. Meanwhile, the core personal consumption expenditures price index rose 3.1% from a year earlier in September, in line with estimates. U.S. initial jobless claims declined by 1,000 to 194,000 in the week ending Oct. 24, compared to market expectations of 199,000.
Most sectors on the S&P 500 closed on a positive note, with health care, real estate and consumer staples stocks recording the biggest gains on Thursday. However, communication services and information technology stocks were among the worst performers.
The Dow Jones closed lower by around 133 points to 52,342.56 on Thursday. The S&P 500 fell 0.30% to 7,720.39, while the Nasdaq Composite tumbled 1.38% at 26,184.72 during Thursday’s session.
Investors are awaiting earnings results from ExxonMobil Holdings Corp. (NYSE:XOM), Chevron Corp. (NYSE:CVX) and AutoNation Inc. (NYSE:AN) today.
What is CNN Business Fear & Greed Index?
At a current reading of 35, the index remained in the “Fear” zone on Thursday, versus a prior reading of 34.
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 equally weighted indicators. The index ranges from 0 to 100, where 0 represents maximum fear and 100 signals maximum greediness.
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