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The Roaring Market: Investor Sentiment Soars Post PCE Report Leading Nasdaq to Historic Heights

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Market Sentiment on the Upswing

The CNN Money Fear and Greed index reflected an uptick in overall market sentiment, remaining in the β€œExtreme Greed” zone on Thursday.

U.S. stocks concluded Thursday on a high note, witnessing the Nasdaq Composite soaring to its first record close since November 2021. The tech-heavy Nasdaq experienced a robust gain of approximately 6.12%, with the S&P 500 also surging by 5.17% in February. On the other hand, the Dow clinched a 2.22% rise, marking four consecutive months of gains.

Shares of Hayward Holdings, Inc. HAYW surged around 13% after reporting exceptional fourth-quarter results, while Snowflake Inc. SNOW shares dipped by 18% post earnings and CEO transition announcement.

In economic news, the annual PCE inflation rate saw a minor easing from 2.6% in December 2023 to 2.4% in January 2024. The core PCE index, excluding energy and food, witnessed a year-on-year surge of 2.8%, slightly lower than the December figure of 2.9%, aligning with the anticipated decrease to 2.8%. Additionally, U.S. initial jobless claims climbed by 13,000 to 215,000 for the week ending February 24.

Sector Performance Overview

Most sectors on the S&P 500 closed positively, with communication services, information technology, and consumer discretionary stocks showcasing significant gains. However, healthcare and consumer staples stocks moved against the tide, closing the session in the red.

Market Indexes on the Move

The Dow Jones wrapped up Thursday’s trading session with around a 47-point rise to 38,996.39. Meanwhile, the S&P 500 saw a 0.52% uptick, reaching 5,096.27, and the Nasdaq Composite surged by 0.90% to 16,091.92.

Investors are eagerly anticipating earnings reports from Plug Power Inc. PLUG, EchoStar Corporation SATS, and fuboTV Inc. FUBO today.

Currently sitting at 79.1, the Fear and Greed index remained in the β€œExtreme Greed” zone on Thursday, a slight uptick from the previous reading of 78.1.

Understanding the CNN Business Fear & Greed Index

The Fear & Greed Index serves as a barometer for current market sentiment, built on the notion that heightened fear can drive stock prices lower while increased greed tends to have the opposite effect. This index is derived from seven equally weighted indicators, ranging from 0 to 100, where 0 signifies maximum fear and 100 signals peak greed.

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