The CNN Money Fear and Greed Index showed some improvement in overall market sentiment, while the index remained in the “Fear” zone on Thursday.
U.S. stocks settled higher on Thursday, with the Dow Jones index gaining more than 600 points during the session after Federal Reserve Governor Christopher Waller signaled he could back leaving interest rates on hold this month.
On the economic data front, the ISM Services PMI jumped to 55.4 in August from 54.1, beating the 54.3 consensus and marking the strongest services expansion in six months, though the prices-paid subindex spiked to a four-year high of 72.6. U.S. initial jobless claims rose by 2,000 to 206,000 during the fourth week of August, compared to market estimates of 205,000. The U.S. trade deficit rose to $88.6 billion in July from a $71.1 billion gap in June and compared to market estimates of a $90 billion deficit.
On the earnings front, shares of Snowflake Inc (NYSE:SNOW) jumped around 17% on Thursday after the company reported better-than-expected second-quarter financial results. Broadcom Inc. (NASDAQ:AVGO) shares fell around 3% as the company reported better-than-expected financial results for the third quarter of fiscal 2026, but issued weak guidance for the fourth quarter.
Most sectors on the S&P 500 closed on a positive note, with communication services, consumer discretionary and financial stocks recording the biggest gains on Thursday. However, energy and materials stocks bucked the overall market trend, closing the session lower.
The Dow Jones closed higher by around 624 points to 53,686.11 on Thursday. The S&P 500 gained 1.06% to 7,747.71, while the Nasdaq Composite climbed 1.40% at 26,584.06 during Thursday’s session.
At a current reading of 35, the index remained in the “Fear” zone on Thursday, versus a prior reading of 33.
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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