Dow Falls More Than 450 Points: Investor Sentiment Declines, Fear & Greed Index Remains In 'Neutral Zone

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

U.S. stocks settled lower on Wednesday, with the Dow Jones index falling more than 450 points, after hitting record highs in the previous session.

Intel Corp. (NASDAQ:INTC) jumped nearly 7%, topping the mega-cap gainers after investors applauded its new product lineup unveiled at CES, including reports of a gaming-focused processor and platform.

On the economic data front, the ISM services PMI rose for a third straight month to a reading of 54.4 in December from 52.6 in the previous month, and topping market estimates of 52.3. U.S. job openings declined by 303,000 to 7.146 million in November, falling to the lowest level since December 2020 and down from market estimates of 7.60 million.

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

The Dow Jones closed lower by around 466 points to 48,996.08 on Wednesday. The S&P 500 fell 0.34% to 6,920.93, while the Nasdaq Composite climbed 0.16% to close at 23,584.28 during Wednesday’s session.

Investors are awaiting earnings results of TD Synnex Corp (NYSE:SNX), Commercial Metals Co (NYSE:CMC) and Acuity Inc (NYSE:AYI) today.

What is CNN Business Fear & Greed Index?

At a current reading of 46.6, the index remained in the “Neutral” zone on Wednesday, versus a prior reading of 51.9.

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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