The CNN Money Fear and Greed Index showed further improvement in overall market sentiment, while the index remained in the “Fear” zone on Wednesday.
U.S. stocks settled higher on Wednesday, with the Dow Jones index gaining for the third straight session as investors reacted to the Federal Reserve’s latest interest rate decision.
The Federal Reserve held its benchmark interest rate steady at 3.75%-4% on Wednesday, in line with market expectations, a month after its first rate hike in three years.
On the earnings front, SK Hynix Inc. (NASDAQ:SKHY) shares rallied over 13% on Wednesday after record third-quarter results. Brinker International (NYSE:EAT) reported better-than-expected first-quarter financial results and raised its FY27 guidance. Vertiv Holdings Co. (NYSE:VRT) reported upbeat third-quarter financial results and raised its FY26 guidance above estimates.
On the economic data front, U.S. mortgage applications surged by 3.4% in the week ending Oct. 23, recording the first gain since August.
Most sectors on the S&P 500 closed on a positive note, with information technology, energy and financial stocks recording the biggest gains on Wednesday. However, utilities and real estate stocks bucked the overall market trend, closing the session lower.
The Dow Jones closed higher by around 98 points to 52,475.10 on Wednesday. The S&P 500 rose 0.28% to 7,743.98, while the Nasdaq Composite gained 0.27% at 26,549.85 during Wednesday’s session.
Investors are awaiting earnings results from Amazon.com Inc. (NASDAQ:AMZN), Eli Lilly And Co. (NYSE:LLY) and Caterpillar Inc. (NYSE:CAT) today.
What is CNN Business Fear & Greed Index?
At a current reading of 36, the index remained in the “Fear” zone on Wednesday, versus a prior reading of 33.
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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