Fear & Greed Index Remains In Greed Zone Following Economic Reports; Dow Records New High
The CNN Money Fear and Greed index showed some easing in overall market sentiment, but the index remained in the Greed zone on Thursday.
U.S. stocks closed higher on Thursday, with the 10-year Treasury falling below 4%. The Fed, on Wednesday, maintained the rate at a range of 5.25%-5.5%, but projected a gradual reduction in the rate, with an expectation of reaching 4.6% by the end of 2024.
On the economic data front, retail sales in the U.S. rose by 0.3% month-over-month in November following a revised 0.2% decline in October. Analysts, however, were expecting a 0.1% decline in sales. U.S. initial jobless claims fell by 19,000 to 202,000 in the week ending Dec. 9, well below market estimates of 220,000.
Shares of Moderna, Inc. gained over 9% on Thursday after the company, and Merck, announced follow-up data from the Phase 2b randomized KEYNOTE-942/mRNA-4157-P201 study in patients with resected high-risk melanoma following complete resection.
Most sectors on the S&P 500 closed on a positive note, with energy and real estate stocks recording the biggest gains on Thursday. However, consumer staples and utilities stocks bucked the overall market trend, closing the session lower.
The Dow Jones closed at a record high, gaining by around 158 points to 37,248.35 on Thursday. The S&P 500 rose 0.26% at 4,719.55, while the Nasdaq Composite climbed 0.19% at 14,761.56 during Thursday’s session.
At a current reading of 72.1, the index remained in the Greed zone on Thursday, versus a prior reading of 72.5.
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.
As fears eased and optimism prevailed in the market, U.S. stocks closed higher on Thursday. The Dow Jones reached a new record high, gaining around 158 points, supported by positive economic reports and the Federal Reserve’s signal of a gradual reduction in interest rates. Retail sales in the U.S. recorded a solid increase of 0.3% in November, surpassing analysts’ expectations. Additionally, initial jobless claims fell to a lower-than-expected 202,000, signaling a stronger labor market.
Moderna, Inc. saw its shares surge over 9% after releasing positive follow-up data from a study in patients with resected high-risk melanoma. This news further fueled the market’s optimism.
While most sectors on the S&P 500 experienced gains, energy and real estate stocks outperformed, while consumer staples and utilities stocks faced some downward pressure.
The Fear & Greed Index, which measures market sentiment, remained in the Greed zone, indicating ongoing optimism among investors. Despite some easing, the index remained at a high level, reflecting the positive sentiment in the market.
