The CNN Money Fear and Greed index moved to a “Neutral” zone after US stocks closed lower on Thursday.
The Dow Jones recorded losses for the third session in a row after investors grew concerned that the Fed will continue increasing interest rates despite signs of easing inflation.
Stocks extended their losses on Thursday after initial jobless claims dropped by 15,000 from the prior week to 190,000 in the week ending January 14, the lowest in four months.
After the closing bell on Thursday, Netflix Inc NFLX reported downbeat earnings for the fourth quarter, while sales topped expectations.
The Dow closed lower by around 252 points to 33,044.56 on Thursday. The S&P 500 fell 0.76% to 3,898.85, while the Nasdaq Composite dropped 0.96% to settle at 10,852.27 in the session.
Investors are awaiting earnings results from Schlumberger Limited SLB, State Street Corporation STT, and Huntington Bancshares Incorporated HBAN today.
At a current reading of 53.0, the index moved to the “Neutral” zone, compared to a previous reading of 57.0.
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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