The CNN Money Fear and Greed index showed an improvement in overall market sentiment after US stocks closed higher for second straight day.
Minutes from the Fed’s meeting indicated that the central bank is looking to slow the pace of interest rate increases. Earlier in November, the Fed raised rates by 75 bps for fourth time in a row.
Initial jobless claims came in higher than expected for the week ending November 19.
Tesla, Inc. (NASDAQ:TSLA) shares gained 7.8% on Wednesday after Citigroup upgraded the electric-vehicle maker stock from Sell to Neutral.
US stock markets were closed on Thursday for the Thanksgiving holiday and will also close early on Friday.
The Dow gained 0.28% to close at 34,194.06 on Wednesday. The S&P 500 rose 0.59% to 4,027.26, while the Nasdaq Composite jumped 0.99% to settle at 11,285.32 in the previous session.
At a current reading of 66.0, the index remained in the "Greed" zone, compared to a previous reading of 62.0.
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.