Benzinga - by Avi Kapoor, Benzinga Staff Writer.
The CNN Money Fear and Greed index showed a sharp decline in the overall market sentiment, while the index remained in the "Greed" zone on Wednesday.
U.S. stocks closed lower on Wednesday following Federal Reserve chairman Jerome Powell’s indication that the central bank will unlikely cut rates in March. The Fed maintained its benchmark fed funds rate range at 5.25%-5.5%.
Shares of Alphabet Inc. (NASDAQ: GOOG) (NASDAQ: GOOGL) fell around 7.4% on Wednesday following fourth-quarter results. Microsoft Corporation (NASDAQ: MSFT) shares fell 2.7% after posting results for its second quarter. The Boeing Company (NYSE: BA) shares gained 5.3% on Wednesday following better-than-expected fourth-quarter earnings.
On the economic data front, private businesses in the U.S. added 107,000 workers in January, compared to a revised 158,000 gain in December, versus market estimates of 145,000. Compensation costs for civilian workers in the U.S. rose by 0.9% during the final quarter of 2023, compared to a 1.1% increase in the prior three-month period.
All sectors on the S&P 500 closed on a negative note, with communication services and information technology stocks recording the biggest losses on Wednesday.
The Dow Jones closed lower by around 317 points to 38,150.30 on Wednesday. The S&P 500 fell 1.61% at 4,845.65, while the Nasdaq Composite fell 2.23% at 15,164.01 during Wednesday’s session.
Investors are awaiting earnings results from Honeywell International Inc. (NASDAQ: HON), Amazon.com, Inc. (NASDAQ: AMZN), Apple Inc. (NASDAQ: AAPL) and Quest Diagnostics Incorporated (NYSE: DGX) today.
At a current reading of 64.8, the index remained in the "Greed" zone on Wednesday versus a prior reading of 75.
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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