Dow Tumbles Almost 300 Points: Investor Sentiment Declines, But Greed Index Remains In 'Fear' Zone

The CNN Money Fear and Greed index showed a slight easing in the overall fear level, while the index remained in the “Fear” zone on Wednesday.

U.S. stocks settled mixed on Wednesday, with the Dow Jones index falling by almost 300 points during the session as investors continued to monitor developments in the ongoing war against Iran.

Iran struck three more cargo vessels in the Strait of Hormuz overnight, extending a campaign that has now targeted more than a dozen ships since the conflict began.

The IEA authorized an unprecedented 400-million-barrel release of emergency reserves from its 32 member nations — the body's largest emergency action on record — but crude markets shrugged off the announcement.

In earnings, Commercial Vehicle Group Inc. (NASDAQ:CVGI) shares jumped over 25% on Wednesday after the company reported better-than-expected fourth-quarter sales results. Shares of Campbell's Co. (NASDAQ:CPB) fell 7% as the company reported worse-than-expected second-quarter financial results and lowered its FY26 adjusted EPS guidance below estimates.

On the economic data front, U.S. consumer inflation held steady in February, with prices rising at an annual pace consistent with market expectations, according to government data released Wednesday.

Most sectors on the S&P 500 closed on a negative note, with consumer staples, real estate and financial stocks recording the biggest losses on Wednesday. However, energy and information technology stocks bucked the overall market trend, closing the session higher.

The Dow Jones closed lower by around 289 points to 47,417.27 on Wednesday. The S&P 500 fell 0.08% to 6,775.80, while the Nasdaq Composite rose 0.08% at 22,716.13 during Wednesday's session.

Investors are awaiting earnings results from Campbell’s Co. (NASDAQ:CPB), UiPath Inc. (NYSE:PATH) and Petco Health and Wellness Company Inc. (NASDAQ:WOOF) today.

What Is CNN Business Fear & Greed Index?

At a current reading of 27.2, the index remained in the “Fear” zone on Wednesday, versus a prior reading of 26.1.

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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