Dow Jumps Around 500 Points Following Fed Decision: Greed Index Remains In 'Fear' Zone
The CNN Money Fear and Greed index showed further easing in the overall fear level, while the index remained in the “Fear” zone on Wednesday.
U.S. stocks settled higher on Wednesday, with the Dow Jones index gaining around 500 points during the session despite Federal Reserve Chair Jerome Powell striking a neutral tone after the central bank’s third consecutive rate cut, dashing expectations for further easing in January.
The Federal Open Market Committee cut the federal funds rate by 25 basis points to 3.50–3.75%, citing cooling labor conditions and moderating inflation.
GE Vernova Inc. (NYSE:GEV) was the day’s standout performer, jumping more than 15% after the company raised its outlook during Tuesday’s Investor Day. Uber Technologies Inc. (NASDAQ:UBER) lagged the most within the S&P 500, sliding more than 5% after a 3.8% drop on Tuesday as regulatory pressure in Europe intensified and Morgan Stanley trimmed its price target.
On the economic data front, U.S. compensation costs for civilian workers rose 0.8% in the third quarter, compared to a 0.9% gain in the previous period.
Most sectors on the S&P 500 closed on a positive note, with industrials, materials and consumer discretionary stocks recording the biggest gains on Wednesday. However, utility stocks bucked the overall market trend, closing the session lower.
The Dow Jones closed higher by around 497 points to 48,057.75 on Wednesday. The S&P 500 gained 0.67% to 6,886.68, while the Nasdaq Composite rose 0.33% to 23,654.16 during Tuesday's session.
Investors are awaiting earnings results from Ciena Corp. (NYSE:CIEN), Broadcom Inc. (NASDAQ:AVGO) and Costco Wholesale Corp. (NASDAQ:COST) today.
What Is CNN Business Fear & Greed Index?
At a current reading of 35.6, the index remained in the “Fear” zone on Wednesday, versus a prior reading of 32.1.
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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