Dow Jumps Over 200 Points As Tesla Surges Over 5%: Investor Sentiment Improves, But Greed Index Remains In 'Extreme Fear' Zone

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

U.S. stocks settled higher on Wednesday, with the Dow Jones index gaining more than 200 points during the session ahead of the announcement of trade tariffs by President Donald Trump.

Trump later unveiled broad new tariffs on key trading partners, sparking fears of a global trade war that could further weaken the U.S. economy.

Tesla Inc. ( TSLA ) rallied over 5% on Wednesday despite reporting the worst quarterly deliveries in over two years and missing analyst estimates.

On the economic data front, private businesses in the U.S. added 155,000 jobs in March compared to a revised 84,000 gain in February and higher than market estimates of 105,000. New orders for U.S. manufactured goods rose by 0.6% month-over-month for February compared to a revised 1.8% gain in January.

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

The Dow Jones closed higher by around 235 points to 42,225.32 on Wednesday. The S&P 500 rose 0.67% to 5,670.97, while the Nasdaq Composite climbed 0.87% to 17,601.05 during Wednesday's session.

Investors are awaiting earnings results from Acuity Inc ( AYI ). , Conagra Brands, Inc ( CAG ). , and Exxon Mobil Corporation ( XOM ) today.

At a current reading of 17.1, the index remained in the “Extreme Fear” zone on Wednesday, versus a prior reading of 15.6.

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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