Benzinga - by Avi Kapoor, Benzinga Staff Writer.
The CNN Money Fear and Greed index showed a slight improvement in the overall market sentiment, while the index remained in the “Fear” zone on Thursday.
U.S. stocks settled lower on Thursday, following the release of economic reports.
The U.S. economy grew an annualized 1.6% in the first quarter, marking a notable slowdown from the 3.4% rate in the final quarter of 2023. However, analysts were expecting a 2.5% growth. The core price index for personal consumption expenditures increased by an annualized 3.7% in the first quarter versus a 2% gain in the prior three-month period.
Merck & Co., Inc. (NYSE:MRK) reported better-than-expected first-quarter financial results and raised its 2024 guidance. Shares of Bristol Myers Squibb & Co (NYSE:BMY) fell more than 8% on Thursday after the company swung to a loss in the first quarter. Meta Platforms, Inc. (NASDAQ:META) shares dipped over 10% after reporting first-quarter results.
Most sectors on the S&P 500 closed on a negative note, with communication services, health care and real estate stocks recording the biggest losses on Thursday. However, materials and emergy stocks bucked the overall market trend, closing the session higher.
The Dow Jones closed lower by around 375 points to 38,085.80 on Thursday. The S&P 500 fell 0.46% at 5,048.42, while the Nasdaq Composite dipped 0.64% at 15,611.76 during Wednesday's session.
Investors are awaiting earnings results from Phillips 66 (NYSE:PSX), Chevron Corporation (NYSE:CVX) and Exxon Mobil Corporation (NYSE:XOM) today.
At a current reading of 40.2, the index remained in the “Fear” zone on Thursday, versus a prior reading of 39.1.
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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