Market Update: Investor Sentiment Declines, Dow Surges Investor Sentiment Edges Lower; Dow Jumps Over 100 Points

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Have you heard? The CNN Money Fear and Greed index just showed a decline in overall market sentiment, but don’t let that rain on your parade! The index remained in the β€œExtreme Greed” zone on Wednesday.

Great news in the U.S. stock market! Stocks closed higher on Wednesday, with the Dow Jones reaching a new closing high during the session. The S&P 500 also flirted near its closing record of 4,796.56 recorded during Jan. 2022.

Things might not all be sunshine and rainbows on the economic data front though. The Manufacturing Activity Index in the Richmond area hit a low of -11 in December, the lowest reading in ten months and versus a reading of -5 in the prior month. The U.S. Fifth District Survey of Service Sector Activity’s revenues index fell to 0 in December compared to November’s reading of 1.

Bummer alert! Shares of Iovance Biotherapeutics, Inc. IOVA took a dive of around 19% during Wednesday’s session after the company announced a clinical program update for LN-145 TIL therapy in non-small lung cancer (NSCLC).

Although most sectors on the S&P 500 closed on a positive note, health care, real estate, and consumer staples stocks recorded the biggest gains on Wednesday. However, energy and communication services stocks went against the grain, closing the session lower.

The Dow Jones closed higher by around 111 points at 37,656.52 on Wednesday. The S&P 500 rose 0.14% to 4,781.58, while the Nasdaq Composite gained 0.16% to reach 15,099.18 during Wednesday’s session.

It’s a wrap! The Dow and S&P 500 are on course to close the year higher by 13% and 24%, respectively.

With the index now sitting at 77.4, it remained in the β€œExtreme Greed” zone on Wednesday, versus a prior reading of 80. But hey, swings and roundabouts, right?

Curious about the CNN Business Fear & Greed Index? It’s a measure of the current market sentiment, 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, ranging from 0 to 100. Zero represents maximum fear, while 100 signals maximum greediness. Oh, the drama!

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