Dow Surges Over 300 Points: Fear & Greed Index Remains In 'Extreme Fear' Zone

The CNN Money Fear and Greed index remained in the “Extreme Fear” zone on Wednesday.

U.S. stocks settled higher on Wednesday, with the Dow Jones index surging more than 300 points during the session ahead of the Thanksgiving holiday.

Dell Technologies Inc. (NYSE:DELL) climbed 5.8% after strong AI server demand and raised guidance. Robinhood Markets Inc. (NASDAQ:HOOD), meanwhile, surged 11% after announcing plans for a futures and derivatives exchange to broaden its prediction-market offerings.

On the economic data front, initial jobless claims for the week ending Nov. 22 came in at 216,000 — down from 222,000 and below expectations of 225,000 — signaling that layoffs are easing and consumers remain supported.

U.S. durable goods orders increased 0.5% month-over-month in September compared to a revised 3.0% gain in August. The Chicago PMI declined to 36.3 in November from 43.8 in the previous month and versus market expectations of 44.3.

Most sectors on the S&P 500 closed on a positive note, with utilities, information technology and materials stocks recording the biggest gains on Wednesday. However, communication services and health care stocks bucked the overall market trend, closing the session lower.

The Dow Jones closed higher by around 315 points to 47,427.12 on Wednesday. The S&P 500 gained 0.69% to 6,812.61, while the Nasdaq Composite gained 0.82% to 23,214.69 during Wednesday’s session.

Investors are awaiting earnings results from Chagee Holdings Ltd. (NASDAQ:CHA) and Globus Maritime Ltd. (NASDAQ:GLBS) today.

What is CNN Business Fear & Greed Index?

At a current reading of 18.3, the index remained in the “Extreme Fear” zone on Thursday, versus a prior reading of 18.7.

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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