Benzinga - by Avi Kapoor, Benzinga Staff Writer.
The CNN Money Fear and Greed index showed further improvement in the overall market sentiment, with the index moving to the "Extreme Greed" zone on Wednesday.
U.S. stocks closed higher on Wednesday, with the S&P 500 index edging closer to the 5,000 mark. The index first breached the 4,000 mark in April 2021.
Ford Motor Company (NYSE: F) shares gained over 6% on Wednesday after the company reported better-than-expected fourth-quarter financial results and issued guidance. Chipotle Mexican Grill, Inc. (NYSE: CMG) shares climbed more than 7% after the company reported better-than-expected fourth-quarter financial results and announced a share repurchase of up to $200 million.
Shares of Snap Inc (NYSE: SNAP) tumbled around 35% on Wednesday after the company reported mixed quarterly results.
On the economic data front, the trade deficit in the U.S. came in at $62.2 billion in December versus a revised $61.9 billion gap in November.
Most sectors on the S&P 500 closed on a positive note, with information technology, consumer discretionary, and communication services stocks recording the biggest gains on Wednesday. However, consumer staples and real estate stocks bucked the overall market trend, closing the session slightly lower.
The Dow Jones closed higher by around 156 points to 38,677.36 on Wednesday. The S&P 500 rose 0.82% at 4,995.06, while the Nasdaq Composite rose 0.95% at 15,756.64 during Wednesday’s session.
Investors are awaiting earnings results from Philip Morris International Inc. (NYSE: PM), The Hershey Company (NYSE: HSY), Kellanova (NYSE: K) and ConocoPhillips (NYSE: COP) today.
At a current reading of 75.1, the index moved to the "Greed" zone on Wednesday, versus a prior reading of 73.
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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