Benzinga - by Avi Kapoor, Benzinga Staff Writer.
The CNN Money Fear and Greed index showed some improvement in the overall market sentiment, while the index remained in the “Fear” zone on Wednesday.
U.S. stocks settled mixed on Wednesday, after the Federal Reserve announced its policy decision. The U.S. central bank opted to keep the federal funds rate unchanged at 5.25% to 5.5%, as widely expected. The Fed said it does not expect it will be appropriate to cut rates until it has gained greater confidence inflation is moving sustainably toward 2%.
On the economic data front, U.S. private employers added 192,000 new jobs during the month of April, compared to a revised 208,000 in March, topping market estimates of a 175,000 gain. The ISM manufacturing PMI declined to 49.2 in April from 50.3 a month ago.
All three major indices recorded losses in April, ending a streak of five consecutive months of gains.
Pfizer Inc. (NYSE:PFE) reported better-than-expected first-quarter financial results. Leggett & Platt, Incorporated (NYSE:LEG) shares dipped around 27% after the company reported worse-than-expected first-quarter financial results. Amazon.com Inc (NASDAQ:AMZN) shares gained over 2% after the company reported upbeat results for its first quarter on Tuesday.
Most sectors on the S&P 500 closed on a negative note, with energy and information technology stocks recording the biggest losses on Wednesday. However, communication services and utilities stocks bucked the overall market trend, closing the session higher.
The Dow Jones closed higher by around 87 points to 37,903.29 on Wednesday. The S&P 500 fell 0.34% at 5,018.39, while the Nasdaq Composite declined 0.33% at 15,605.48 during Wednesday's session.
Investors are awaiting earnings results from Kellanova (NYSE:K), ConocoPhillips (NYSE:COP), and Apple Inc. (NASDAQ:AAPL) today.
At a current reading of 40.2, the index remained in the “Fear” zone on Wednesday, versus a prior reading of 39.5.
What is CNN Business Fear & Greed Index?
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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