Benzinga - by Avi Kapoor, Benzinga Staff Writer.
The CNN Money Fear and Greed index showed further improvement in overall market sentiment, as the index remained in the "Greed" zone on Wednesday.
U.S. stocks closed higher on Wednesday after the Federal Reserve announced its policy decision. The Fed, during the December Federal Open Market Committee (FOMC), maintained the rate at a range of 5.25%-5.5%. However, they projected a gradual reduction in the rate, with an expectation of reaching 4.6% by the end of 2024.
U.S. producer prices came in steady for November from October, versus a revised 0.4% decline in the prior period, and versus market estimates of a 0.1% rise.
After the closing bell, Adobe Inc. (NASDAQ: ADBE) posted upbeat earnings for its fourth quarter but issued a weak sales forecast for the full year 2024.
All sectors on the S&P 500 closed on a positive note, with utilities and real estate stocks recording the biggest gains on Wednesday.
The Dow Jones closed higher by around 512 points to 37,090.24 on Wednesday. The S&P 500 rose 1.37% at 4,707.09, while the Nasdaq Composite climbed 1.38% at 14,733.96 during Tuesday’s session.
Investors are awaiting earnings results from Lennar Corporation (NYSE: LEN), Costco Wholesale Corporation (NASDAQ: COST) and Jabil Inc. (NYSE: JBL) today.
At a current reading of 69.3, the index remained in the "Greed" zone on Tuesday, versus a prior reading of 65.
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.
Read Next: Research Frontiers And 3 Other Stocks Under $1 Insiders Are Buying
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.