Dow Drops Over 450 Points: Market Confidence Wanes, Fear & Greed Index Stays in 'Neutral Territory

Market Sentiment and Major Index Movements

The CNN Money Fear and Greed Index indicated a drop in overall investor sentiment, though it continued to reflect a "Neutral" stance as of Wednesday.

On Wednesday, U.S. equities ended the session in negative territory. The Dow Jones Industrial Average retreated by over 450 points after reaching all-time highs the previous day.

Intel Leads Mega-Cap Gainers

Intel Corp (NASDAQ: INTC) surged nearly 7%, outperforming other large-cap stocks. The rally followed positive investor response to the company’s latest product announcements at CES, which included a new processor and platform tailored for gaming.

Economic Updates

• The ISM Services PMI climbed for the third consecutive month, reaching 54.4 in December, up from 52.6 in November and surpassing expectations of 52.3.
• Job openings in the U.S. fell by 303,000 to 7.146 million in November, marking the lowest level since December 2020 and coming in below the forecast of 7.60 million.

Sector Performance

Most S&P 500 sectors closed lower, with materials, utilities, and industrials experiencing the steepest declines. In contrast, health care and communication services managed to finish the day in positive territory.

Closing Numbers

• The Dow Jones ended the day down approximately 466 points at 48,996.08.
• The S&P 500 slipped 0.34% to 6,920.93.
• The Nasdaq Composite edged up 0.16%, closing at 23,584.28.

Upcoming Earnings Reports

Investors are looking ahead to earnings releases from the following companies:

• TD Synnex Corp (NYSE: SNX)
• Commercial Metals Co (NYSE: CMC)
• Acuity Inc (NYSE: AYI)

Understanding the CNN Business Fear & Greed Index

As of Wednesday, the index stood at 46.6, maintaining its position in the "Neutral" range, compared to a previous reading of 51.9.

The Fear & Greed Index gauges prevailing market sentiment. It operates on the principle that heightened fear tends to depress stock prices, while increased greed has the opposite effect. The index is derived from seven equally weighted indicators and spans a scale from 0 (extreme fear) to 100 (extreme greed).

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