The CNN Money Fear and Greed index remained in the “Greed” zone after US stocks recorded sharp losses on Wednesday.
The Fed announced another 0.75 percentage point rate hike on Wednesday. Federal Reserve Chair Jerome Powell said, “We still have some ways to go and incoming data since our last meeting suggests that the ultimate level of interest rates will be higher than previously expected.”
Shares of Amazon.com, Inc. AMZN, Netflix, Inc. NFLX and Meta Platforms, Inc. META all dropped around 5% on Wednesday.
Moderna, Inc. MRNA, PayPal Holdings, Inc. PYPL and Starbucks Corporation SBUX are set to report quarterly earnings today.
The Dow dipped 1.55% to close at 32,147.76 on Wednesday. The S&P 500 declined 2.50% to 3,759.69, while the Nasdaq Composite dipped 3.36% to settle at 10,524.80 in the previous session.
At a current reading of 56.0, the index remained in the “Greed” zone, unchanged from a previous reading of 56.0.
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.