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Market Sentiment Cools as Dow Drops 450 Points Despite Intel's Big CES Rally

MarketDash Editorial Team
1 day ago
The CNN Fear and Greed Index slipped to 46.6 but held in neutral territory as stocks retreated Wednesday. The Dow fell more than 450 points following its record high, though Intel surged 7% after unveiling new gaming products at CES.

Wednesday brought a reality check to U.S. markets, with the Dow Jones shedding more than 450 points just one session after hitting record highs. The pullback pushed the CNN Money Fear and Greed Index down to 46.6 from 51.9, though it remained parked in the "Neutral" zone—suggesting investors haven't quite tipped into panic mode yet.

Not everything went south, though. Intel Corp. (INTC) surged nearly 7%, becoming the day's top mega-cap gainer after investors gave a thumbs-up to its new product lineup unveiled at CES. Reports highlighted a gaming-focused processor and platform that seemed to resonate with the market, offering a bright spot in an otherwise gloomy session.

On the economic front, there was a mixed bag of data to digest. The ISM services PMI climbed for a third consecutive month, reaching 54.4 in December versus 52.6 in November and handily beating expectations of 52.3. That's the good news. The less cheerful news? U.S. job openings tumbled by 303,000 to 7.146 million in November, marking the lowest level since December 2020 and missing the 7.60 million forecast.

The sectoral breakdown showed most of the S&P 500 finished in the red, with materials, utilities, and industrials taking the hardest hits. Health care and communication services stocks bucked the trend, managing to close higher while the rest of the market struggled.

Final numbers: The Dow closed down roughly 466 points at 48,996.08. The S&P 500 slipped 0.34% to 6,920.93, while the Nasdaq Composite squeezed out a 0.16% gain to finish at 23,584.28.

Looking ahead, investors are eyeing earnings reports from TD Synnex Corp (SNX), Commercial Metals Co (CMC), and Acuity Inc (AYI) for further market direction.

Understanding the Fear & Greed Index

So what exactly is this Fear and Greed thing? The index measures current market sentiment based on a simple idea: fear pushes stock prices down, while greed pushes them up. It calculates a score from 0 to 100 using seven equal-weighted indicators, where 0 represents maximum fear and 100 signals maximum greed. At 46.6, Wednesday's reading suggests the market is sitting right in the middle—neither terrified nor euphoric.

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Market Sentiment Cools as Dow Drops 450 Points Despite Intel's Big CES Rally

MarketDash Editorial Team
1 day ago
The CNN Fear and Greed Index slipped to 46.6 but held in neutral territory as stocks retreated Wednesday. The Dow fell more than 450 points following its record high, though Intel surged 7% after unveiling new gaming products at CES.

Wednesday brought a reality check to U.S. markets, with the Dow Jones shedding more than 450 points just one session after hitting record highs. The pullback pushed the CNN Money Fear and Greed Index down to 46.6 from 51.9, though it remained parked in the "Neutral" zone—suggesting investors haven't quite tipped into panic mode yet.

Not everything went south, though. Intel Corp. (INTC) surged nearly 7%, becoming the day's top mega-cap gainer after investors gave a thumbs-up to its new product lineup unveiled at CES. Reports highlighted a gaming-focused processor and platform that seemed to resonate with the market, offering a bright spot in an otherwise gloomy session.

On the economic front, there was a mixed bag of data to digest. The ISM services PMI climbed for a third consecutive month, reaching 54.4 in December versus 52.6 in November and handily beating expectations of 52.3. That's the good news. The less cheerful news? U.S. job openings tumbled by 303,000 to 7.146 million in November, marking the lowest level since December 2020 and missing the 7.60 million forecast.

The sectoral breakdown showed most of the S&P 500 finished in the red, with materials, utilities, and industrials taking the hardest hits. Health care and communication services stocks bucked the trend, managing to close higher while the rest of the market struggled.

Final numbers: The Dow closed down roughly 466 points at 48,996.08. The S&P 500 slipped 0.34% to 6,920.93, while the Nasdaq Composite squeezed out a 0.16% gain to finish at 23,584.28.

Looking ahead, investors are eyeing earnings reports from TD Synnex Corp (SNX), Commercial Metals Co (CMC), and Acuity Inc (AYI) for further market direction.

Understanding the Fear & Greed Index

So what exactly is this Fear and Greed thing? The index measures current market sentiment based on a simple idea: fear pushes stock prices down, while greed pushes them up. It calculates a score from 0 to 100 using seven equal-weighted indicators, where 0 represents maximum fear and 100 signals maximum greed. At 46.6, Wednesday's reading suggests the market is sitting right in the middle—neither terrified nor euphoric.