The CNN Money Fear and Greed index indicated an uptick in the overall market sentiment on Thursday.
Thursday witnessed a continuation of the upward trajectory in the U.S. stock market, building on the momentum from the previous session. At the March meeting, the Fed decided to maintain interest rates at their current levels between 5.25% and 5.5%, in line with investor expectations, reassuring them of the Fed’s plan to reduce the cost of borrowing in the upcoming months.
Shares of Accenture Plc ACN experienced a mild decline of over 9% on Thursday post the release of its fiscal second-quarter results. In contrast, Micron Technology, Inc. MU witnessed a remarkable surge of over 14% after reporting robust second-quarter results and providing a bullish outlook for the third quarter.
In terms of economic data, U.S. initial jobless claims showcased a slight drop of 2,000 to 210,000 for the week ending March 16, surpassing market expectations of 215,000. The U.S. current account deficit shrunk by $1.6 billion to $194.8 billion in the fourth quarter, beating projections for a $209 billion deficit. While the S&P Global services PMI experienced a decline to a three-month low of 51.7 in March from 52.3 the previous month, the manufacturing PMI surged to a 21-month high of 52.5 in March.
The majority of sectors in the S&P 500 closed on a positive note, with industrials, financials, and energy stocks leading the gains on Thursday. However, utilities and communication services diverged from the overall market trend, concluding the session in the red.
The Dow Jones surged by approximately 269 points to 39,781.37 on Thursday. The S&P 500 recorded a 0.32% increase, closing at 5,241.53, while the Nasdaq Composite climbed 0.20% to 16,401.84 during Thursday’s session.
Investors are eagerly anticipating the earnings reports from Hyzon Motors Inc. HYZN, AstroNova, Inc. ALOT, and Humacyte, Inc. HUMA today.
The CNN Money Fear and Greed index saw a minor rise to 74.8 on Thursday, compared to the previous reading of 74.6.
What does the CNN Business Fear & Greed Index signify?
The Fear & Greed Index serves as an indicator of the prevailing market sentiment. It operates on the principle that heightened fear puts pressure on stock prices, while increased greed has the opposite effect. This index comprises seven equally-weighted indicators and has a scale ranging from 0 to 100, with 0 signifying maximum fear and 100 signaling extreme greed.
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