Despite rising tensions in the Middle East, the overall market sentiment remains optimistic, according to the CNN Money Fear and Greed index. The index, which measures market sentiment based on seven equal-weighted indicators, remained in the ‘Greed’ zone on Wednesday, indicating investors’ confidence in the market.
US stocks closed slightly higher on Wednesday, reflecting this positive sentiment. However, the day’s trading saw a notable decline in Nike’s share price. The sportswear giant experienced a 7% drop after several firms downgraded their price targets following the company’s first-quarter revenue miss.
On a more positive note, the ADP National Employment Report revealed strong job growth in the US. Private businesses added 143,000 workers to their payrolls in September, surpassing both August’s revised gain of 103,000 and market expectations of 124,000. This strong job growth indicates a healthy economic outlook.
While most sectors on the S&P 500 closed in the red, with consumer discretionary, consumer staples, and communication services stocks bearing the brunt of losses, energy and information technology stocks performed better, closing the session higher.
The Dow Jones Industrial Average closed up around 40 points to 42,196.52, the S&P 500 rose 0.01% to 5,709.54, and the Nasdaq Composite gained 0.08% to 17,925.12.
Investors are eagerly awaiting earnings results from Constellation Brands, Inc. (STZ) and AngioDynamics, Inc. (ANGO) today.
The CNN Money Fear & Greed Index currently stands at 68.4, indicating a high level of greed in the market. This index is based on the principle that fear puts downward pressure on stock prices, while greed has the opposite effect. The index ranges from 0 to 100, with 0 representing maximum fear and 100 signaling maximum greediness.
