Nasdaq Surges Over 100 Points Following Fed's Rate Cut: Investor Fear Eases Further, Greed Index Remains In 'Fear' Zone
The Nasdaq Composite rose over 100 points following the Fed's 25 basis point rate cut, easing investor fear, though the CNN Money Fear and Greed index remains in the 'Fear' zone at 42.3. Caterpillar shares surged 12% after strong earnings, while Boeing fell 4% due to wider losses. The Dow Jones dropped 74 points, and the S&P 500 slipped slightly. Investors are awaiting earnings from major companies like Amazon and Apple.
The CNN Money Fear and Greed index showed further easing in the overall fear level, while the index remained in the “Fear” zone on Wednesday.
U.S. stocks settled mixed on Wednesday, with the Nasdaq Composite gaining more than 100 points during the session after the central bank lowered rates by 25 basis points to 3.75%-4.00% for the second straight meeting. Fed Chair Jerome Powell cautioned that another cut is "not a foregone conclusion—far from it," pushing back against expectations that had built up across financial markets in recent weeks.
Shares of Caterpillar Inc. (NYSE:CAT) rose around 12% on Wednesday after the company reported better-than-expected third-quarter financial results. Shares of Boeing Co. (NYSE:BA) fell around 4% after the company reported a wider third-quarter 2025 loss. Verizon Communications (NYSE:VZ) reported mixed third-quarter financial results and affirmed 2025 guidance.
On the economic data front, U.S. pending home sales remained flat in September, compared to market estimates of a 1.6% gain.
Most sectors on the S&P 500 closed on a negative note, with real estate, consumer staples and materials stocks recording the biggest losses on Wednesday. However, communication services and information technology stocks bucked the overall market trend, closing the session higher.
The Dow Jones closed lower by around 74 points to 47,632.00 on Wednesday. The S&P 500 slipped 0.01% to 6,890.59, while the Nasdaq Composite rose 0.55% at 23,958.47 during Wednesday's session.
Investors are awaiting earnings results from Amazon.com Inc. (NASDAQ:AMZN), Apple Inc. (NASDAQ:AAPL) and Mastercard Inc. (NYSE:MA) today.
What is CNN Business Fear & Greed Index?
At a current reading of 42.3, the index remained in the “Fear” zone on Wednesday, versus a prior reading of 39.3.
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.
- Top 2 Energy Stocks That May Implode This Quarter
Photo via Shutterstock
