Investor Sentiment Improves Following Inflation Report

The CNN Money Fear and Greed index showed some improvement in overall sentiment among U.S. investors on Wednesday.

The S&P 500 and the Nasdaq settled at their strongest levels since April 2022 on Wednesday following the release of inflation data. The annual inflation rate in the U.S. eased to 3% in June, recording the lowest level since March 2021, versus May’s level of 4% and market expectations of 3.1%. Month over month, the index increased 0.2% last month.

Investors are expecting another 25 bps rate hike at the Federal Reserve’s July meeting

The Walt Disney Company (NYSE: DIS) extended Bob Iger’s contract as CEO through 2026.

The Dow Jones closed higher by around 86 points to 34,347.43 on Wednesday. The S&P 500 rose 0.74% at 4,472.16, while the Nasdaq Composite added 1.15% at 13,918.96 during the session.

Investors are awaiting earnings results from Delta Air Lines, Inc. (NYSE: DAL), Conagra Brands, Inc. (NYSE: CAG) and The Progressive Corporation (NYSE: PGR) today.

At a current reading of 80.0, the index remained in the “Extreme Greed” zone, versus a previous reading of 79.0

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.

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