The CNN Money Fear and Greed index indicated an improvement in overall market sentiment, remaining in the “Extreme Greed” zone on Thursday.
On the U.S. stock market, Thursday saw positive gains, with the Nasdaq Composite reaching its first closing record since November 2021. The tech-heavy Nasdaq surged approximately 6.12%, while the S&P 500 added 5.17% over the course of February. Additionally, the Dow Jones Industrial Average rose by 2.22%, marking gains for four consecutive months.
Shares of Hayward Holdings, Inc. (NYSE: HAYW) surged approximately 13% on Thursday following the company’s announcement of better-than-expected fourth-quarter results. Conversely, Snowflake Inc. (NYSE: SNOW) experienced a decline of around 18% in its share price after reporting fourth-quarter financial results, issuing guidance, and announcing a CEO transition.
On the economic data front, the annual Personal Consumption Expenditures (PCE) inflation rate slightly eased from 2.6% in December 2023 to 2.4% in January 2024. Excluding energy and food, the core PCE index showed a year-on-year increase of 2.8%, down from the 2.9% rate observed in December and consistent with the expected decrease to 2.8%. Additionally, U.S. initial jobless claims rose by 13,000 to 215,000 in the week ending February 24th.
The S&P 500 closed mostly higher on Thursday, with communication services, information technology, and consumer discretionary stocks leading the gains, while healthcare and consumer staples stocks lagged behind. The Dow Jones ended the session up around 47 points at 38,996.39, the S&P 500 rose by 0.52% to 5,096.27, and the Nasdaq Composite climbed 0.90% to 16,091.92.
Investors are anticipating earnings reports from Plug Power Inc. (NASDAQ: PLUG), EchoStar Corporation (NASDAQ: SATS), and fuboTV Inc. (NYSE: FUBO) today.
The CNN Business Fear & Greed Index, currently at a reading of 79.1, remained in the “Extreme Greed” zone on Thursday, compared to a previous reading of 78.1.
The Fear & Greed Index serves as a gauge of the prevailing market sentiment, with higher fear typically exerting downward pressure on stock prices, while higher greed tends to have the opposite effect. The index is derived from seven equally weighted indicators and ranges from 0 to 100, with 0 representing maximum fear and 100 indicating maximum greediness.