Dow Surges Over 300 Points Amid Easing Geopolitical Concerns: Fear & Greed Index Remains In 'Neutral' Zone

The CNN Money Fear and Greed index showed some improvement in the overall market sentiment, while the index remained in the “Neutral” zone on Thursday.

U.S. stocks settled higher on Thursday, with the Dow Jones index gaining more than 300 points during the session amid easing geopolitical concerns.

Sentiment turned decisively positive after Trump announced plans to suspend proposed tariffs on several European countries, citing a framework agreement reached following talks with NATO leadership.

Meta Platforms Inc. (NASDAQ:META) jumped more than 5% after Jefferies flagged what it called an attractive valuation discount. Procter & Gamble (NYSE:PG) surged around 3% after reporting stronger-than-expected earnings. General Aerospace (NYSE:GE) slid over 7% despite topping estimates.

On the economic data front, U.S. initial jobless claims rose by 1,000 from the previous week to 200,000 during the week ending Jan. 17. The U.S. economy grew at an annualized rate of 4.4% in the third quarter, above the preliminary estimate of 4.3% and recording the strongest growth since the third quarter of 2023. The PCE price index increased 0.2% month-over-month in November, the same as in the previous month and in line with market estimates.

Most sectors on the S&P 500 closed on a positive note, with communication services, consumer discretionary and information technology stocks recording the biggest gains on Thursday. However, real estate and utilities stocks bucked the overall market trend, closing the session lower.

The Dow Jones closed higher by around 307 points to 49,384.01 on Thursday. The S&P 500 rose 0.55% to 6,913.35, while the Nasdaq Composite gained 0.91% at 23,436.02 during Thursday’s session.

Investors are awaiting earnings results from Booz Allen Hamilton Holding Corp. (NYSE:BAH), Webster Financial Corp. (NYSE:WBS) and Slb NV (NYSE:SLB) today.

What Is CNN Business Fear & Greed Index?

At a current reading of 54.3, the index remained in the “Neutral” zone on Thursday, versus a prior reading of 52.3.

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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