US stock markets saw further easing in the overall fear level on Thursday, according to the CNN Money Fear and Greed index.
Wall street rose sharply on Wednesday as strong economic data boosted overall market sentiment.
All three major stock indices recorded sharp gains, with the tech-laden Nasdaq closing the session at a three-month high level on Wednesday.
Economic data, released Wednesday, showed a surprise increase in services activity and a sharp rise in factory orders. The ISM Services PMI unexpectedly rose to 56.7 in July, recording the highest level in three months, while factory orders rose 2% month-over-month in June.
Upbeat projections from PayPal Holdings, Inc. PYPL and CVS Health Corporation CVS also lifted investor risk appetite.
The Dow Jones dropped around 416 points to close at 32,812.50 on Wednesday. The S&P 500 and the Nasdaq Composite, meanwhile, added 1.56% and 2.59%, respectively in the previous session.
At a current reading of 44.0, the index remained in the “fear” zone on Thursday, following a previous reading of 41.0.
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.