The CNN Money Fear and Greed index showed further decline in the overall market sentiment, while the index remained in the “Neutral” zone on Wednesday.
U.S. stocks settled lower on Wednesday, with the Dow Jones index falling more than 300 points during the session. The S&P 500 also declined for the fourth straight session, but recorded gains for 2025.
The S&P 500 jumped 16.39% for the year, recording its third consecutive double-digit annual surge, while the Nasdaq Composite gained 20.36%. The Dow, meanwhile, added 12.97% in 2025.
Shares of Vanda Pharmaceuticals Inc. (NASDAQ:VNDA) jumped more than 25% on Wednesday after the company announced it received FDA approval of NEREUS for the prevention of vomiting induced by motion. Shares of FuelCell Energy Inc. (NASDAQ:FCEL) fell 8% after the company filed for an amended common stock offering.
On the economic data front, U.S. initial jobless claims declined by 16,000 to 199,000 in the week ending Dec. 27, compared to market estimates of 220,000.
All sectors on the S&P 500 closed on a negative note, with real estate, industrials and materials stocks recording the biggest losses on Wednesday.
The Dow Jones closed lower by around 304 points to 48,063.29 on Wednesday. The S&P 500 slipped 0.74% to 6,845.50, while the Nasdaq Composite declined 0.76% to 23,241.99 during Tuesday's session.
At a current reading of 45.8, the index remained in the “Neutral” zone on Wednesday, versus a prior reading of 48.4.
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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