The CNN Money Fear and Greed index showed some improvement in the overall market sentiment, while the index was in the “Extreme Greed” zone on Thursday.
U.S. stocks settled higher on Thursday, with the S&P 500 hitting record highs following the release of jobs data
Investor sentiment was boosted by June’s nonfarm payrolls report, which showed the U.S. economy added 147,000 jobs, well above the 110,000 forecast. The data helped ease concerns stoked by a weak private payroll report just a day earlier. The unemployment rate dipped to 4.1% from 4.2%, also beating forecasts for a rise to 4.3%. It marks the lowest unemployment rate since January 2025.
Tech stocks led the charge, with the so-called Magnificent Seven reaching a combined market cap of $18.1 trillion. Nvidia Corp. (NASDAQ:NVDA) solidified its lead as the world’s most valuable company, surpassing a $3.9 trillion valuation, ahead of Microsoft Corp. (NYSE:MSFT) at $3.7 trillion.
Tripadvisor, Inc. (NASDAQ:TRIP) shares jumped around 17% on Thursday after activist investor Starboard Value acquired a 9% stake in the company.
All sectors on the S&P 500 closed on a positive note, with financial, information technology and industrials stocks recording the biggest gains on Thursday.
The Dow Jones closed higher by over 344 points to 44,828.53 on Thursday. The S&P 500 rose 0.83% to 6,279.35, while the Nasdaq Composite climbed 1.02% to 20,601.10 during Thursday’s session.
What is CNN Business Fear & Greed Index?
At a current reading of 78.5, the index remained in the “Extreme Greed” zone on Thursday, versus a prior reading of 75.
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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