Nasdaq Tumbles Over 500 Points After Inflation Data: Investor Sentiment Weakens Further, Greed Index Remains In ‘Fear’ Zone

Benzinga Earnings10-15 14:23

The CNN Money Fear and Greed index showed another decline in the overall market sentiment, while the index remained in the “Fear” zone on Wednesday.

U.S. stocks ended lower on Wednesday, with the Nasdaq Composite falling more than 500 points during the session following the release of inflation data.

Hotter-than-expected September inflation report stoked bets that the Federal Reserve will keep raising rates, while semiconductors extended their losing streak to a seventh straight session.

Headline consumer prices rose 3.7% from a year earlier, above the 3.6% forecast and up from 3.4% in August. Core CPI also came in above expectations at 2.6%.

Bank of America Corp. (NYSE:BAC) stock fell around 5% on Wednesday after the bank reported disappointing third-quarter 2026 results.

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

The Dow Jones closed lower by around 49 points to 51,621.48 on Wednesday. The S&P 500 fell 1.11% to 7,718.94, while the Nasdaq Composite fell 1.88% at 26,692.87 during Wednesday’s session.

Investors are awaiting earnings results from Charles Schwab Corporation (NYSE:SCHW), US Bancorp (NYSE:USB) and PNC Financial Services Group Inc. (NYSE:PNC) today.

At a current reading of 32, the index remained in the “Fear” zone on Wednesday, versus a prior reading of 44.

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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