Investor optimism soared following the latest Personal Consumption Expenditures (PCE) report, propelling the market sentiment. The CNN Money Fear and Greed index reflected this positive shift, hovering in the “Extreme Greed” zone on Thursday, showcasing a surge in positive market sentiment.
Thursday saw U.S. stocks soaring to new heights, with the Nasdaq Composite hitting a record-high close for the first time since November 2021. The tech-heavy Nasdaq surged approximately 6.12%, while the S&P 500 climbed 5.17% in February. Meanwhile, the Dow recorded a 2.22% increase, marking gains for four consecutive months, painting a picture of unyielding bullishness across the board.
Hayward Holdings, Inc. (NYSE: HAYW) experienced a remarkable surge of about 13% on Thursday after surpassing market expectations with its fourth-quarter financial performance. In contrast, Snowflake Inc. (NYSE: SNOW) faced an 18% dip following its fourth-quarter financial results, forward guidance, and news of a CEO transition, signifying the tumultuous nature of the market’s response to corporate developments.
In economic news, the annual PCE inflation rate witnessed a slight moderation from 2.6% in December 2023 to 2.4% in January 2024. Excluding volatile energy and food prices, the core PCE index demonstrated a year-on-year rise of 2.8%, slightly lower than the 2.9% reported in December. This development aligns with the anticipated decrease to 2.8%. Moreover, U.S. initial jobless claims climbed by 13,000 to 215,000 for the week ending on February 24, adding a layer of complexity to the economic landscape.
Across the S&P 500 landscape, most sectors closed on a positive trajectory, with communication services, information technology, and consumer discretionary stocks leading the gains on Thursday. Nevertheless, healthcare and consumer staples stocks diverged from the overall market trend, finishing the session on a lower note, exhibiting the market’s sector-specific nuances.
Thursday’s closing numbers depicted the Dow Jones edging higher by around 47 points, settling at 38,996.39. The S&P 500 also made gains, rising 0.52% to 5,096.27, while the Nasdaq Composite surged 0.90% to 16,091.92 during the trading session, painting a picture of a dynamic and evolving market landscape.
The investor community is on the edge of their seats, eagerly anticipating earnings reports from industry players like Plug Power Inc. (NASDAQ: PLUG), EchoStar Corporation (NASDAQ: SATS), and FuboTV Inc. (NYSE: FUBO) in the current reporting cycle, reflecting the market’s insatiable appetite for corporate insight and performance metrics.
With the Fear and Greed Index clocking in at 79.1, hovering in the “Extreme Greed” zone on Thursday, surpassing the previous reading of 78.1, investors are riding the wave of positivity and optimism accentuated by the market’s recent momentum and resilience.
Unpacking the CNN Business Fear & Greed Index:
The Fear & Greed Index serves as a barometer of prevailing market sentiment, rooted in the premise that heightened fear exerts downward pressure on stock prices, whereas increased greed tends to have an upward effect. Calculated based on seven equally-weighted indicators, the index spans from 0 to 100, with 0 indicating maximum fear, and 100 signaling a peak of sheer greediness, offering investors a nuanced view of market dynamics and sentiment.
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