HomeMarket NewsMicro Cap StocksU.S. Stocks Rebound as Investor Fear Subsides, Boosted by Positive Economic Reports

U.S. Stocks Rebound as Investor Fear Subsides, Boosted by Positive Economic Reports

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The CNN Business Fear and Greed Index, a measure of market sentiment, moved to the β€œFear” zone on Thursday, reflecting a cautious investor outlook. However, U.S. stocks managed to close higher, with the Dow Jones Industrial Average gaining over 100 points.

Investors are eagerly anticipating the release of the personal consumption expenditures price index, the Federal Reserve’s preferred inflation gauge. This report is expected to provide valuable insights into the current state of the economy.

Positive Economic Data and Mixed Earnings Results Shape the Market

In terms of economic data, U.S. jobless claims rose slightly to 204,000 in the week ending Sept. 23, which was below market expectations. Meanwhile, the U.S. economy showed steady growth, expanding at an annualized rate of 2.1% during the second quarter, maintaining the prior estimate.

On the corporate side, Accenture plc (ACN) experienced a 4% decline in its stock price after reporting mixed fourth-quarter financial results and issuing weak FY24 adjusted EPS guidance. CarMax Inc (KMX) also faced a downturn, with its shares falling 13% following weaker-than-expected earnings for the second quarter.

Despite these setbacks, most sectors on the S&P 500 closed on a positive note. Communication services and materials stocks saw the biggest gains, while utilities stocks trended lower.

The Market Recap – Dow Jones, S&P 500, and Nasdaq Composite

The Dow Jones closed higher by approximately 116 points at 33,666.34 on Thursday. The S&P 500 rose 0.59% to 4,299.70, and the Nasdaq Composite added 0.83% to reach 13,201.28 during Thursday’s session.

Looking at performance for the month and the quarter, the Dow is expected to end the month down 3% and the quarter down 2%. The S&P 500 is on track to finish September 4.6% lower and the quarter 3.4% lower.

Earnings to Watch: Carnival Corporation and Genius Group Limited

Investors are keeping a close eye on earnings results from Carnival Corporation (CC) and Genius Group Limited (GNS), both expected to be released today. These updates will provide crucial insights into the performance and future prospects of these companies.

Understanding the CNN Business Fear & Greed Index

The CNN Business Fear & Greed Index is a valuable indicator of market sentiment. It measures the level of fear or greed in the market, with higher fear generally putting pressure on stock prices and higher greed having the opposite effect. The index is calculated using seven equally-weighted indicators, ranging from 0 (maximum fear) to 100 (maximum greed).

For more in-depth analysis and expert opinions on market trends, check out our featured article: β€œWall Street’s Most Accurate Analysts Say Hold These 3 Industrials Stocks Delivering High-Dividend Yields.”

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