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

The CNN Money Fear and Greed index showed further 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 250 points and the S&P 500 hitting fresh records during the session.

The New York Stock Exchange closed early at 1 p.m. ET on Wednesday and remained closed Thursday for Christmas Day.

Nike (NYSE:NKE) shares benefited after Apple Inc. (NASDAQ:AAPL) CEO Tim Cook disclosed the purchase of 50,000 shares at $58.97 each. Micron Technology Inc. (NASDAQ:MU) added around 4%, extending its post-earnings rally to 27% over the past five sessions.

On the economic data front, U.S. initial jobless claims declined by 10,000 from the previous week to 214,000 in the week ending Dec. 20, compared to market estimates of 223,000.

Most sectors on the S&P 500 closed on a positive note, with consumer staples, real estate and utilities stocks recording the biggest gains on Wednesday. However, energy stocks bucked the overall market trend, closing the session lower.

The Dow Jones closed higher by around 289 points to 48,731.16 on Wednesday. The S&P 500 rose 0.32% to 6,932.05, while the Nasdaq Composite jumped 0.22% to 23,613.31 during Wednesday's session.

What Is CNN Business Fear & Greed Index?

At a current reading of 58.7, the index remained in the “Greed” zone on Wednesday, versus a prior reading of 57.7.

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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