The CNN Money Fear and Greed index showed an improvement in the overall market sentiment, while the index remained in the “Neutral” zone on Wednesday.
U.S. stocks settled higher on Wednesday, with the S&P 500 gaining more than 1% during the session as President Donald Trump abruptly withdrew his latest round of tariff threats.
On Wednesday afternoon, the president said the planned tariffs on European Union countries will no longer take effect, following what he described as a “very productive” meeting with NATO Secretary General Mark Rutte.
Johnson & Johnson (NYSE:JNJ) on Wednesday reported better-than-expected fourth-quarter earnings. Netflix Inc. (NASDAQ:NFLX) shares fell around 2% on Wednesday after the company reported fourth-quarter financial results and issued first-quarter guidance below estimates on Tuesday.
On the economic data front, U.S. pending home sales dipped by 9.3% month-over-month in December following a 3.3% gain in November and compared to market estimates of a 0.3% decline. U.S. construction spending increased 0.5% month-over-month in October compared to a 0.6% gain in September and versus market expectations of a 0.1% gain.
All sectors on the S&P 500 closed on a positive note, with energy, materials and health care stocks recording the biggest gains on Wednesday.
The Dow Jones closed higher by around 589 points to 49,077.23 on Wednesday. The S&P 500 rose 1.16% to 6,875.62, while the Nasdaq Composite gained 1.18% at 23,224.82 during Wednesday’s session.
Investors are awaiting earnings results from Abbott Laboratories (NYSE:ABT), Procter & Gamble Co (NYSE:PG) and Intel Corp (NASDAQ:INTC) today
What Is CNN Business Fear & Greed Index?
At a current reading of 50.4, the index remained in the “Neutral” zone on Wednesday, versus a prior reading of 46.4.
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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