The CNN Money Fear and Greed index showed some improvement in overall market optimism following the release of inflation data, but the index remained in the “neutral” zone on Thursday.
The annual inflation rate in the US declined to 8.5% in July, compared to more than 40-year high level of 9.1% in June, and compared to analysts’ expectations of 8.7%. Compared to the prior month, consumer prices came in unchanged during July.
The decline in inflation rate increased prospects that the Federal Reserve might become less aggressive in raising interest rates.
Shares of The Trade Desk, Inc. TTD jumped over 36% on Wednesday after the company reported better-than-expected Q2 sales results and issued Q3 sales guidance above estimates.
The Dow Jones jumped around 535 points to close at 33,309.51 on Wednesday. The S&P 500 rose 2.13%, while the Nasdaq Composite rose 2.89%, to settle at 12,854.80 in the previous session.
At a current reading of 52.0, the index remained in the “neutral” zone on Thursday, following a previous reading of 49.0.
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.
Image and article originally from www.benzinga.com. Read the original article here.