Dow Tumbles Over 250 Points As Oil Prices Rally: Fear Index Remains In 'Greed' Zone

Benzinga04-30 15:13

The CNN Money Fear and Greed index showed almost no change in the overall market sentiment, while the index remained in the “Greed” zone on Wednesday.

U.S. stocks settled mostly lower on Wednesday, with the Dow Jones index falling more than 250 points during the session, recording losses for the fifth straight session. Crude prices rose again on Wednesday amid renewed Hormuz disruption fears.

In earnings, Automatic Data Processing (NASDAQ:ADP) reported better-than-expected third-quarter financial results. Brinker International Inc. (NYSE:EAT) reported upbeat third-quarter earnings on Wednesday.

On the economic data front, U.S. wholesale inventories rose by 1.4% month-over-month to $932.8 billion in March, compared to a revised 0.9% gain in February. The goods deficit increased to $87.9 billion in March from $83.5 billion in the previous month and versus market estimates of an $87 billion gap. U.S. durable goods orders increased by 0.8% from the previous month to $318.9 billion in March, versus a 1.2% decline in the previous month.

Most sectors on the S&P 500 closed on a negative note, with utilities, materials and health care stocks recording the biggest losses on Wednesday. However, information technology and energy stocks bucked the overall market trend, closing the session higher.

The Dow Jones closed lower by around 280 points to 48,861.81 on Wednesday. The S&P 500 fell 0.04% to 7,135.95, while the Nasdaq Composite gained 0.04% at 24,673.24 during Wednesday's session.

Investors are awaiting earnings results from Apple Inc. (NASDAQ:AAPL), Caterpillar Inc. (NYSE:CAT) and Mastercard Inc. (NYSE:MA) today.

What Is CNN Business Fear & Greed Index?

At a current reading of 63.6, the index remained in the “Greed” zone on Wednesday, versus a prior reading of 63.7.

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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