Dow drops over 100 points after July PCE inflation report
U.S. stocks slid Wednesday after a PCE inflation release; the Dow Jones fell more than 100 points. The CNN Fear & Greed Index moved to the “Neutral” zone, reading 55 versus 57 prior.
The CNN Money Fear and Greed Index showed a decline in overall market sentiment, while the index moved to the “Neutral” zone on Wednesday.
U.S. stocks settled lower on Wednesday, with the Dow Jones index falling more than 100 points during the session following the release of PCE inflation data.
The Personal Consumption Expenditures (PCE) price index rose 0.2% month-over-month in July, matching forecasts of 0.1%, while the annual rate held at 3.7% versus expectations of 3.6%.
Core PCE held at 3.3% year-over-year, still well north of the Federal Reserve’s 2% target.
J.M.
Smucker Co. (NYSE: SJM ) shares gained over 4% on Wednesday after the company reported better-than-expected first-quarter financial results and raised its FY27 guidance above estimates.
After the closing bell on Wednesday, Nvidia Corp. (NASDAQ: NVDA ) reported better-than-expected second-quarter financial results and issued a strong revenue forecast for the current quarter.
Most sectors on the S&P 500 closed on a negative note, with health care, communication services and consumer discretionary stocks recording the biggest losses on Wednesday.
However, industrials and utilities stocks bucked the overall market trend, closing the session higher.
The Dow Jones closed lower by around 114 points to 53,463.88 on Wednesday.
The S&P 500 slipped 0.02% to 7,675.70, while the Nasdaq Composite declined 0.08% at 26,130.20 during Wednesday’s session.
Investors are awaiting earnings results from Best Buy Co Inc. (NYSE: BBY ), Dollar General Corp. (NYSE: DG ) and Ulta Beauty Inc (NASDAQ: ULTA ) today.
What is CNN Business Fear & Greed Index? At a current reading of 55, the index moved to the “Neutral” zone on Wednesday, versus a prior reading of 57.
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 greed.
Photo via Shutterstock