Market Sentiment Indicator Shows Improvement
The CNN Money Fear and Greed index displayed enhanced market sentiment on Thursday, remaining in the “Extreme Greed” zone.
Market Performance Overview
Closing higher on Thursday, U.S. stocks saw the Nasdaq Composite reach its first closing record since November 2021, with a remarkable 6.12% surge. The S&P 500 also added 5.17% in February, while the Dow rose by 2.22%, marking four consecutive months of gains.
Stock Performance Impact
Following the release of better-than-expected fourth-quarter results by Hayward Holdings, Inc. HAYW, its shares surged by approximately 13% on Thursday. However, Snowflake Inc. SNOW experienced an 18% decline after announcing its fourth-quarter financial results, guidance, and CEO transition.
Economic Data Insights
In January 2024, the annual PCE inflation rate slightly eased to 2.4% from December’s 2.6%. The core PCE index excluding energy and food exhibited a 2.8% year-on-year surge, aligning with expectations. Additionally, U.S. initial jobless claims increased by 13,000 to 215,000 for the week ending February 24.
Market Sector Performance
Most sectors on the S&P 500 closed positively, with communication services, information technology, and consumer discretionary stocks leading the gains. Conversely, healthcare and consumer staples stocks deviated from the upward trend, closing lower.
Market Index Closing Values
On Thursday, the Dow Jones closed approximately 47 points higher at 38,996.39, the S&P 500 rose by 0.52% to 5,096.27, and the Nasdaq Composite climbed 0.90% to 16,091.92.
Upcoming Earnings Expectations
Investors anticipate earnings reports from Plug Power Inc. PLUG, EchoStar Corporation SATS, and fuboTV Inc. FUBO today.
Market Sentiment Indicator Insight
With a current reading of 79.1 on Thursday, the market sentiment index remained in the “Extreme Greed” zone, showing an uptick from the previous reading of 78.1.
Understanding the Fear & Greed Index
The Fear & Greed Index provides insight into current market sentiment, depicting the impact of fear and greed on stock prices. This index, ranging from 0 to 100, indicates the level of fear and greediness prevalent in the market based on seven equally weighted indicators.
