Investors received a glimmer of hope as the CNN Money Fear and Greed index reflected a modest uptick in overall market sentiment on Thursday.
U.S. stocks soared on Thursday, building on gains from the previous session. The Federal Reserve, in its March meeting, maintained interest rates at a range of 5.25% to 5.5%, a move widely anticipated by market participants. The Fed’s commitment to reducing the cost of borrowing in the upcoming months delivered a jolt of confidence to Wall Street.
While Accenture Plc ACN experienced a decline of over 9% following its fiscal second-quarter results, Micron Technology, Inc. MU witnessed a surge of more than 14% after reporting strong second-quarter earnings and offering bullish guidance for the third quarter.
From an economic standpoint, initial jobless claims in the U.S. fell by 2,000 to 210,000 for the week ending March 16, surpassing market expectations of 215,000. Additionally, the U.S. current account deficit shrank by $1.6 billion to $194.8 billion in the fourth quarter, outperforming estimates of a $209 billion gap. The S&P Global services PMI dipped to 51.7 in March, a three-month low, while the manufacturing PMI surged to 52.5, reaching a 21-month high in March.
Most sectors within the S&P 500 closed with gains, with industrials, financials, and energy stocks leading the way. However, utilities and communication services diverged from the broader market trend, ending the session lower.
The Dow Jones Industrial Average wrapped up the day with a substantial gain of approximately 269 points, closing at 39,781.37 on Thursday. The S&P 500 rose by 0.32% to 5,241.53, while the Nasdaq Composite climbed 0.20% to 16,401.84 during the trading session.
Investors eagerly await earnings reports from Hyzon Motors Inc. HYZN, AstroNova, Inc. ALOT, and Humacyte, Inc. HUMA today.
The CNN Money Fear and Greed index inched up to 74.8 on Thursday, slightly surpassing its previous reading of 74.6.
Unraveling the CNN Business Fear & Greed Index
The Fear & Greed Index acts as a barometer of prevailing market sentiment, theorizing that heightened fear suppresses stock prices, while amplified greed exerts the opposite effect. Derived from seven equally-weighted indicators, the index spans from 0 to 100, with 0 depicting maximum fear and 100 denoting peak avarice.
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