The stock market experienced a surge on Wednesday, driven by a combination of positive economic data and the recent election of Donald Trump. The Dow Jones Industrial Average soared over 1,500 points to a record-breaking closing level, while the S&P 500 also reached an all-time high during the session. This optimistic market performance was further reflected in the CNN Money Fear & Greed Index, which moved into the “Neutral” zone on Wednesday, signaling a shift towards a less fearful and more balanced market sentiment. This improvement in market sentiment comes after the index previously stood at 47.9, indicating a more cautious approach among investors.
The Fear & Greed Index is a widely followed metric that gauges the current market sentiment. It is based on the premise that fear exerts downward pressure on stock prices, while greed pushes them upwards. The index is calculated using seven equally weighted indicators and ranges from 0 to 100, where 0 represents extreme fear and 100 signifies maximum greed.
In addition to the positive market performance, the economic data released on Wednesday provided further support for the bullish sentiment. U.S. mortgage applications saw a decrease of 10.8% from the previous week, while U.S. crude oil inventories rose by 2.149 million barrels in the week ended November 1st. The Federal Reserve is scheduled to announce its policy decision today, which is expected to further impact market sentiment.
Individual companies also contributed to the positive market sentiment. CVS Health Corp’s shares jumped over 11% after the company reported strong third-quarter results. Johnson Controls International plc reported better-than-expected earnings for its fourth quarter. Most sectors on the S&P 500 closed in positive territory, with consumer discretionary, industrials, and financials stocks leading the gains. However, consumer staples and real estate stocks bucked the overall market trend, closing the session lower.
Looking ahead, investors are eagerly awaiting earnings results from companies like The Hershey Company, Halliburton Company, and Block, Inc. These reports are expected to provide further insights into the overall market performance and future outlook. The Dow Jones closed at 43,729.93, the S&P 500 at 5,929.04, and the Nasdaq Composite at 18,983.46. The market remains cautiously optimistic, with investors closely monitoring economic data and corporate earnings to gauge the direction of the market in the coming weeks.
