S&P 500 Hits Record High: Investor Sentiment Improves, Fear Index Remains In 'Greed' Zone

The CNN Money Fear and Greed index showed some improvement in the overall market sentiment, while the index remained in the “Greed” zone on Wednesday.

U.S. stocks settled higher on Wednesday, with the Dow Jones index gaining more than 100 points during the session. The S&P 500 also hit a new all-time closing high on Wednesday.

On the economic data front, the volume of mortgage applications declined by 0.5% from the previous week in the third week of August, following a 1.4% decline in the prior month.

MongoDB Inc. (NASDAQ:MDB) shares jumped 38% after the company reported better-than-expected second-quarter financial results and raised its FY26 guidance above estimates. Shares of Kohl's Corp. (NYSE:KSS) rose 24% after the company reported better-than-expected quarterly financial results and raised its FY25 revenue outlook.

Most sectors on the S&P 500 closed on a positive note, with energy, information technology and real estate stocks recording the biggest gains on Wednesday. However, communication services and health care stocks bucked the overall market trend, closing the session lower.

The Dow Jones closed higher by around 147 points to 45,565.23 on Wednesday. The S&P 500 rose 0.24% to 6,481.40, while the Nasdaq Composite gained 0.21% to 21,590.14 during Wednesday's session.

Investors are awaiting earnings results from Dollar General Corp. (NYSE:DG), Best Buy Co. Inc. (NYSE:BBY) and Dell Technologies Inc. (NYSE:DELL) today.

What is CNN Business Fear & Greed Index?

At a current reading of 61.9, the index remained in the “Greed” zone on Wednesday, versus a prior reading of 60.9.

The Fear & Greed Index is a measure of the current market sentiment. It is based on the premise that higher fear exerts pressure on stock prices, while higher greed has the opposite effect. The index is calculated based on seven equal-weighted indicators. The index ranges from 0 to 100, where 0 represents maximum fear and 100 signals maximum greediness.

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