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Investor Optimism Improves; Fear & Greed Index Moves To 'Extreme Greed' Zone

Published 25/01/2024, 07:09
© Reuters.  Investor Optimism Improves; Fear & Greed Index Moves To 'Extreme Greed' Zone
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Benzinga - by Avi Kapoor, Benzinga Staff Writer.

The CNN Money Fear and Greed index showed a further increase in overall market sentiment, with the index moving to the "Extreme Greed" zone on Wednesday.

U.S. stocks closed mixed on Wednesday, with the S&P 500 recording gains for the fifth consecutive day and hitting a fresh all-time closing record.

Shares of Netflix, Inc. (NASDAQ: NFLX) jumped 10.7% on Wednesday after the company reported better-than-expected sales for its fourth quarter and added 13.12 million net paid subscribers in the quarter. AT&T Inc. (NYSE: T) shares fell 3% after the company reported mixed fourth-quarter financial results and issued guidance.

On the economic data front, the S&P Global U.S. services PMI rose to a seven-month high level of 52.9 in January, while manufacturing PMI surged to 50.3 in January from 47.9 in the prior month. The S&P Global composite PMI rose to 52.3 in January, compared to the previous month's level of 50.9.

Most sectors on the S&P 500 closed on a negative note, with materials, utilities, and real estate stocks recording the biggest losses on Wednesday. However, energy and communication services stocks bucked the overall market trend, closing the session higher.

The Dow Jones closed lower by around 99 points to 37,806.39 on Wednesday. The S&P 500 rose 0.08% at 4,868.55, while the Nasdaq Composite rose 0.36% at 15,481.92 during Wednesday’s session.

Investors are awaiting earnings results from Visa Inc. (NYSE: V), Dow Inc. (NYSE: DOW), Southwest Airlines Co. (NYSE: LUV), and American Airlines Group Inc. (NASDAQ: AAL) today.

At a current reading of 76.1, the index moved to the "Extreme Greed" zone on Wednesday versus a prior reading of 72.7.

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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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga

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