Dow Jumps Over 600 Points On Iran Truce Hopes: Investor Sentiment Improves, Fear Index Remains In 'Greed' Zone

Benzinga05-21 15:29

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

U.S. stocks settled higher on Wednesday, with the Dow Jones index gaining more than 600 points during the session as crude oil prices fell on revived hopes of a U.S.-Iran de-escalation.

President Donald Trump said the U.S. is in the “final stage” of negotiations with Iran, while Iran’s Foreign Ministry said exchanges between Tehran and Washington are still ongoing and continue to be based on Iran’s 14-point proposal.

In earnings, Lowe’s Companies Inc. (NYSE:LOW) posted upbeat first-quarter earnings and revenue. Target Corp. (NYSE:TGT) reported better-than-expected earnings for the first quarter and raised its FY2026 sales forecast.

On the economic data front, U.S. mortgage applications declined by 2.3% in the second week of May, following a 1.7% gain in the previous period.

Most sectors on the S&P 500 closed on a positive note, with materials, information technology and consumer discretionary stocks recording the biggest gains on Wednesday. However, consumer staples and energy stocks bucked the overall market trend, closing the session lower.

The Dow Jones closed higher by around 645 points to 50,009.35 on Wednesday. The S&P 500 rose 1.08% to 7,432.97, while the Nasdaq Composite jumped 1.54% at 26,270.36 during Wednesday's session.

Investors are awaiting earnings results from Walmart Inc. (NASDAQ:WMT), Deere & Co. (NYSE:DE) and Williams-Sonoma Inc. (NYSE:WSM) today.

What Is CNN Business Fear & Greed Index?

At a current reading of 60.9, the index remained in the “Greed” zone on Wednesday, versus a prior reading of 59.4.

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.

Photo via Shutterstock

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment