The CNN Money Fear and Greed index moved to the “Greed” zone following the release of US inflation data.
US stocks closed higher on Thursday after consumer price data showed inflation cooling in December, increasing prospects that the US Federal Reserve might slow interest rate increases.
The Consumer Price Index fell 0.1% month-over-month in December. The annual inflation rate slowed for a sixth consecutive month to 6.5% in December, recording the lowest level since October 2021.
The Dow closed higher by 217 points to 34,189.97 on Thursday. The S&P 500 rose 0.34% to 3,983.17, while the Nasdaq Composite jumped 0.64% to settle at 11,001.10 in the previous session.
Investors are awaiting earnings results from Bank of America Corporation BAC, JPMorgan Chase & Co. JPM, Wells Fargo & Company WFC and Citigroup Inc. C today.
At a current reading of 57.0, the index moved to the “Greed” zone, compared to a previous reading of 55.0.
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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Image and article originally from www.benzinga.com. Read the original article here.