Dow Surges More Than 400 Points: Investor Sentiment Improves, Fear Index Remains In 'Greed' Zone
U.S. stocks rose significantly on Wednesday, with the Dow Jones increasing by over 400 points, driven by improved investor sentiment as indicated by the CNN Money Fear and Greed index, which remains in the 'Greed' zone. Performance Food Group and Brinker International reported strong quarterly results, while mortgage applications surged by 10.9%. Treasury Secretary Scott Bessent called for a 50-basis-point rate cut by the Federal Reserve. Most S&P 500 sectors gained, except for consumer staples and communication services. Investors are anticipating earnings from Tapestry Inc., Deere & Co, and Applied Materials Inc.
The CNN Money Fear and Greed index showed further improvement in the overall market sentiment, while the index remained in the “Greed” zone on Wednesday.
U.S. stocks settled higher on Wednesday, with the Dow Jones jumping more than 400 points and the S&P 500 closing at another record high.
Performance Food Group Company PFGC reported better-than-expected fourth-quarter adjusted EPS and sales. Brinker International, Inc. EAT reported upbeat fourth-quarter EPS and sales results and raised FY2026 guidance above estimates.
On the economic data front, the volume of mortgage applications jumped by 10.9% from the previous week during the first week of August.
Treasury Secretary Scott Bessent intensified calls for the Federal Reserve to cut rates in September, urging a 50-basis-point reduction to make up for what he called missed cuts in June and July, had labor market data been accurate.
Most sectors on the S&P 500 closed on a positive note, with materials, health care and consumer discretionary stocks recording the biggest gains on Wednesday. However, consumer staples and communication services stocks bucked the overall market trend, closing the session lower.
The Dow Jones closed higher by around 464 points to 44,922.27 on Wednesday. The S&P 500 rose 0.32% to 6,466.58, while the Nasdaq Composite gained 0.14% at 21,713.14 during Wednesday's session.
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Investors are awaiting earnings results from Tapestry Inc. TPR, Deere & Co DE and Applied Materials Inc. AMAT today.
What is CNN Business Fear & Greed Index?
At a current reading of 63.5, the index remained in the “Greed” zone on Wednesday, versus a prior reading of 62.9.
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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