The market continued to display a bullish sentiment, with the CNN Money Fear and Greed index remaining in the ‘Greed’ zone on Thursday. This optimistic outlook was reflected in the strong performance of U.S. stocks, with both the Dow Jones Industrial Average and the S&P 500 reaching new record highs during the trading session.
Several factors contributed to the positive market sentiment. The U.S. Federal Reserve’s decision to cut interest rates by 50 basis points on Wednesday, lowering the federal funds rate to a range of 4.75% to 5%, provided a boost to investor confidence. Additionally, positive economic data released on Thursday further fueled the market’s optimism. The U.S. reported a current account deficit of $266.8 billion in the second quarter, exceeding market expectations and indicating continued economic activity. Furthermore, initial jobless claims fell by 12,000 to 219,000 in the week ending September 14, suggesting a healthy labor market.
Tech stocks were particularly strong performers, with NVIDIA Corporation and Advanced Micro Devices experiencing substantial gains of around 4% and 6%, respectively. Micron Technology also added 2.2% during the session. Tesla Inc. continued its upward trajectory, closing the day with impressive gains of 7.4%. Most sectors on the S&P 500 closed in the green, with consumer discretionary, communication services, and information technology stocks leading the charge. However, consumer staples and utilities stocks bucked the overall trend, closing the session lower.
The Dow Jones closed at 42,025.19, gaining approximately 522 points. The S&P 500 surged 1.70% to 5,713.64, while the Nasdaq Composite climbed 2.51% to 18,013.98. Investors are now looking ahead to earnings results from VinFast Auto Ltd., a key event that could further shape market sentiment in the coming days.
The CNN Money Fear & Greed Index, which measures current market sentiment, stood at 65.7 on Thursday, staying in the ‘Greed’ zone. The index is based on the principle that heightened fear exerts pressure on stock prices, while increased greed has the opposite effect. It is calculated using seven equal-weighted indicators and ranges from 0 to 100, with 0 representing maximum fear and 100 signaling maximum greediness.
