The CNN Money Fear and Greed index showed a further decline in overall market sentiment, with the index moving to the "Greed" zone on Wednesday.
U.S. stocks closed lower on Wednesday following the release of Fed minutes, with the Nasdaq Composite recording losses for a fourth straight session.
The Fed’s latest minutes from the December meeting showed that policymakers acknowledged that interest rates are likely at or near the cycle’s peak, indicating a potential shift in monetary policy as the economic landscape evolves.
Major indices recorded sharp gains last year, with the S&P 500 surging over 24% and the Nasdaq gaining 43% in 2023.
Shares of UniFirst Corporation UNF fell around 7% on Wednesday after the company released earnings for its first quarter.
On the economic data front, the number of job openings fell by 62,000 from the prior month to 8.790 million in November, compared to market estimates of 8.85 million. The ISM manufacturing PMI rose to 47.4 in December from 46.7 in the prior month, topping market estimates of 47.1. However, the recent reading signaled a contraction in factory activity for the 14th month.
Most sectors on the S&P 500 closed on a negative note, with real estate and consumer discretionary stocks recording the biggest losses on Wednesday. However, energy and utilities stocks bucked the overall market trend, closing the session higher.
The Dow Jones closed lower by around 285 points to 37,430.19 on Wednesday. The S&P 500 fell 0.80% at 4,704.81, while the Nasdaq Composite fell 1.18% at 14,592.21 during Wednesday’s session.
Investors are awaiting earnings results from Lamb Weston Holdings, Inc. LW, Conagra Brands, Inc. CAG, and Walgreens Boots Alliance, Inc. WBA today.
At a current reading of 72.3, the index moved to the "Greed" zone on Wednesday versus a prior reading of 77.1.
What is CNN Business Fear & Greed Index?
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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