The CNN Money Fear and Greed index moved to the “Greed” zone after US stocks notched their biggest surge since 2020.
Inflation data released Thursday showed October’s consumer price index increased 0.4% for the month and 7.7% year-over-year, recording its lowest annual rise since January and compared to the 8.2% annual rate in the previous month.
Treasury yields also dropped sharply following the CPI data, with the 10-year Treasury yield declining to 3.81% on Thursday.
Tech stocks led the rally, with shares of Apple Inc. AAPL and Microsoft Corporation MSFT gaining more than 8% each on Thursday. Meta Platforms, Inc. META shares also jumped over 10% in the previous session.
The Dow jumped 3.70% to close at 33,715.37 on Thursday. The S&P 500 climbed 5.54% to 3,956.37, while the Nasdaq Composite climbed 7.35% to settle at 11,114.15 in the previous session.
At a current reading of 63.0, 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.
Image and article originally from www.benzinga.com. Read the original article here.