Nvidia, Tesla Rally as Dow, S&P 500 Soar to New Highs on Fed Rate Cut: Fear Index Remains in ‘Greed’ Zone – NVIDIA (NASDAQ:NVDA)

CNN Money’s Fear and Greed Index showed a further improvement in overall market sentiment, while the index remained in the “greed” zone on Thursday.

U.S. stocks ended higher on Thursday, with the Dow Jones and S&P 500 hitting new record highs during the session. The U.S. Federal Reserve on Wednesday cut interest rates by 50 basis points at its September Federal Open Market Committee meeting, lowering the federal funds rate to a range of 4.75% to 5%.

In economic data, the U.S. reported a current account deficit of $266.8 billion in the second quarter, compared with a gap of $241 billion in the previous period and above market estimates of $260 billion. Initial jobless claims in the U.S. fell 12,000 from the previous week to 219,000 in the week ending Sept. 14, compared with market expectations of 230,000.

Technology stocks rose, and shares NVIDIA Corporation NVDA AND Advanced Micro Devices, Inc.. AMD gaining around 4% and 6% respectively. Micron Technology, Inc. HIM Shares rose 2.2% during the session. Tesla Inc. TSLA also rose sharply, ending the day up 7.4%.

Most sectors in the S&P 500 closed higher, with consumer discretionary, communication services and information technology stocks posting the biggest gains on Thursday. However, consumer staples and utilities stocks bucked the overall market trend, ending the session lower.

The Dow Jones closed higher by about 522 points to 42,025.19 on Thursday. The S&P 500 rose 1.70% to 5,713.64, while the Nasdaq Composite rose 2.51% to 18,013.98 during Thursday’s session.

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What is the CNN Business Fear & Greed Index?

At the current level of 65.7, the index remained in the “Greed” zone on Thursday, down from the previous reading of 60.8.

The Fear and Greed Index is a measure of current market sentiment. It is based on the idea that increased fear puts pressure on stock prices, while increased greed has the opposite effect. The index is calculated from seven equally weighted indicators. The index ranges from 0 to 100, with 0 indicating maximum fear and 100 signaling maximum greed.

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