Investor Sentiment Declines Slightly Following Inflation Data

Benzinga · 05/11/2023 02:35

The CNN Money Fear and Greed index showed some decline in overall sentiment among U.S. investors on Wednesday.

The Dow Jones closed slightly lower, while the Nasdaq rose sharply on Wednesday following the release of inflation data. The annual inflation rate in the US fell to 4.9% in April, recording the lowest level since April 2021, and compared to 5% in March. Treasury yields moved lower following the inflation report.

Airbnb, Inc. (NASDAQ:ABNB) shares dropped around 11% on Wednesday after the company issued soft Q2 guidance. Twilio Inc. (NYSE:TWLO) shares dipped more than 12% after the company issued weak Q2 revenue guidance.

The Dow Jones closed lower by around 30 points to 33,531.33 on Wednesday. The S&P 500 rose 0.45% at 4,137.64, while the Nasdaq Composite rose 1.04% to settle at 12,306.44 during the session.

Investors are awaiting earnings results from US Foods Holding Corp. (NYSE:USFD), Tapestry, Inc. (NYSE:TPR) and News Corporation (NASDAQ:NWSA) today.

At a current reading of 60.0, the index remained in the "Greed" zone, versus a previous reading of 61.0

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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