The CNN Money Fear and Greed index showed a further increase in the overall fear level, while the index remained in the “Extreme Fear” zone on Wednesday.
U.S. stocks settled lower on Wednesday, with the Dow Jones index falling around 700 points during the session after Federal Reserve Chair Jerome Powell linked rising tariffs to higher inflation and slower growth, while making it clear the central bank has no intention of cushioning market losses.
Semiconductors were particularly hit hard following fresh export restrictions on Nvidia Corp. (NASDAQ:NVDA) chips to China. The iShares Semiconductor ETF (NASDAQ:SOXX) fell sharply on Wednesday, with Nvidia and Advanced Micro Devices Inc. (NASDAQ:AMD) both down around 7%.
Travelers Companies Inc. (NYSE:TRV) posted better-than-expected first-quarter results on Wednesday. Abbott Laboratories (NYSE:ABT) reported upbeat first-quarter adjusted EPS results.
On the economic data front, U.S. industrial production declined by 0.3% in March compared to market estimates of a 0.2% fall. U.S. retail sales rose 1.4% month-over-month in March versus a 0.2% gain in the previous month and better than estimates of 1.3%.
Most sectors on the S&P 500 closed on a negative note, with consumer discretionary, information technology, and communication services stocks recording the biggest losses on Wednesday. However, energy stocks bucked the overall market trend, closing the session higher.
The Dow Jones closed lower by around 700 points to 39,669.39 on Wednesday. The S&P 500 fell 2.24% to 5,275.70, while the Nasdaq Composite dipped 3.07% to 16,307.16 during Wednesday's session.
Investors are awaiting earnings results from Netflix Inc. (NASDAQ:NFLX), UnitedHealth Group Incorporated (NYSE:UNH), and D.R. Horton Inc. (NYSE:DHI) today.
What is CNN Business Fear & Greed Index?
At a current reading of 14.4, the index remained in the “Extreme Fear” zone on Wednesday, versus a prior reading of 18.2.
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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