The US stock market experienced a surge on Thursday, with the S&P 500 closing higher for the sixth consecutive trading session. This positive momentum was fueled by a combination of favorable economic data and strong corporate earnings releases.
On the economic front, retail sales in the US increased by 1% month-over-month in July, exceeding market expectations. This data point suggests robust consumer spending and a healthy economy. Additionally, initial jobless claims declined by 7,000 to 227,000 in the week ending August 10, further indicating a strong labor market.
Adding to the positive market sentiment, several major companies reported strong earnings results. Walmart, a retail giant, announced robust second-quarter results and raised its full-year guidance, reflecting strong consumer demand. Similarly, Cisco Systems, a networking equipment company, saw its shares surge by 6.8% after reporting better-than-expected quarterly earnings.
Despite the overall positive market performance, the CNN Money Fear & Greed index, which measures market sentiment, remained in the ‘Fear’ zone on Thursday. While the index showed improvement from its previous reading, it still suggests that investors remain cautious and hesitant to fully embrace the current market rally. This suggests that the market may still be susceptible to volatility and could see fluctuations in the near term.
Overall, Thursday’s trading session was marked by positive sentiment driven by strong economic data and robust corporate earnings. However, the continued presence of ‘Fear’ in the market suggests that investors remain cautious and that the market might experience further fluctuations in the coming days.
What is the CNN Business Fear & Greed Index?
The Fear & Greed Index is a tool used to gauge the current market sentiment. It is based on the premise that heightened fear tends to put downward pressure on stock prices, while increased greed has the opposite effect. The index is calculated using seven equally weighted indicators and ranges from 0 to 100, with 0 representing maximum fear and 100 signifying maximum greed. The current reading of 32.9 suggests that the market is still in a state of fear, even though it has improved from the previous reading of 27.6.
