Benzinga - by Avi Kapoor, Benzinga Staff Writer.
The CNN Money Fear and Greed index showed a decline in the overall market sentiment, while the index remained in the “Neutral” zone on Wednesday.
U.S. stocks settled lower on Wednesday, with the Dow Jones index falling more than 400 points during the session. The 10-year Treasury note yield rose for a second day.
Major indices are on course to record gains for May, with the S&P 500 gaining 4.6%, and the Dow adding around 1.7% last month.
On the economic data front, the Dallas Fed general business activity index for Texas' service sector declined to -12.1 in May compared to -10.6 a month ago. Investors are awaiting data on PCE inflation for April, which will be released on Friday.
Abercrombie & Fitch Co (NYSE:ANF) posted better-than-expected first-quarter financial results and raised guidance. Shares of Advance Auto Parts Inc. (NYSE:AAP) fell around 11% on Wednesday after the company posted results for its first quarter on Wednesday.
All sectors on the S&P 500 closed on a negative note, with industrials, energy, and materials stocks recording the biggest losses on Wednesday
The Dow Jones closed lower by around 411 points to 38,441.54 on Wednesday. The S&P 500 fell 0.74% at 5,266.95, while the Nasdaq Composite dipped 0.58% at 16,920.58 during Wednesday's session.
Investors are awaiting earnings results from Best Buy Co., Inc. (NYSE:BBY), Dollar General Corporation (NYSE:DG), Dell Technologies Inc. (NYSE:DELL), and Costco Wholesale Corporation (NASDAQ:COST) today.
At a current reading of 47.5, the index remained in the “Neutral” zone on Wednesday, versus a prior reading of 51.2.
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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