The stock market displayed a positive trend on Thursday, with the S&P 500 experiencing gains for the fourth consecutive day. This suggests a growing sense of optimism among investors. However, despite the positive performance, the CNN Money Fear and Greed index, a gauge of market sentiment, remained in the ‘Fear’ zone on Thursday. This indicates that investors are still somewhat apprehensive about the market’s future direction.
The index, which measures market sentiment based on seven key indicators, currently stands at 42.3, up from 39.1 the previous day. A reading between 0 and 100 reflects the level of fear or greed in the market, with 0 signifying extreme fear and 100 representing extreme greed. The index’s continued presence in the ‘Fear’ zone suggests that while the market has shown some positive momentum, investors remain cautious.
The day’s positive performance was driven by strong performances from megacap technology and semiconductor companies. Nvidia Corporation, a leading graphics processing unit manufacturer, saw its shares rise by approximately 1.9% during the trading session. Alphabet Inc., the parent company of Google, also experienced growth, with its shares closing around 2.3% higher.
Adding to the positive sentiment, Signet Jewelers Limited, a leading jewelry retailer, reported better-than-expected second-quarter earnings and a more optimistic outlook for third-quarter revenue.
However, economic data released on Thursday painted a mixed picture. The U.S. Producer Price Index (PPI), which measures inflation at the wholesale level, rose by 0.2% month-over-month in August, exceeding market expectations of 0.1%. This suggests that inflationary pressures remain a concern for the economy.
On a less positive note, initial jobless claims increased by 2,000 from the previous week to 230,000 for the week ending September 7. This rise in claims could indicate some softening in the labor market.
All sectors on the S&P 500 index closed in positive territory, with communication services, energy, and consumer discretionary stocks leading the gains. The Dow Jones Industrial Average closed up around 235 points to 41,096.77, the S&P 500 rose 0.75% to 5,595.76, and the Nasdaq Composite jumped 1% to 17,569.68.
Investors are looking ahead to earnings results from SelectQuote, Inc. and Cheetah Mobile Inc., which are scheduled to be released today. The upcoming earnings reports are expected to provide further insights into the health of various industries and the overall market sentiment.
