The CNN Money Fear and Greed Index remained in the “fear” zone despite a rise in US stocks on Wednesday.
Wall Street has suffered sharp losses since mid-August after Fed Chair Jerome Powell’s aggressive comments. Markets now expect the Federal Reserve to hike rates by 75 basis points later this month to combat rising inflation.
Investors are awaiting Fed Chair Powell’s speech today for some clues on interest rates.
The energy index fell nearly 1.2% on Wednesday amid a sharp drop in oil prices.
That dow up 1.40% to close at 31,581.28 on Wednesday. That S&P500 rose 1.83% to 3,979.87, while the Nasdaq Composite rose 2.14% to 11,791.90 in the previous session, amid a rise in shares, including Microsoft Corporation MSFT, apple inc AAPL and Amazon.com, Inc. AMZN.
With a current reading of 40.0, the index remained in “fear” territory after previously reading 41.0.
What is the CNN Business Fear & Greed Index?
The Fear & Greed Index is a measure of current market sentiment. It is based on the premise that higher fear puts pressure on stock prices, while higher greed has the opposite effect. The index is calculated based on seven equally weighted indicators. The index ranges from 0 to 100, with 0 representing maximum fear and 100 representing maximum greed.
