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

U.S. stocks settled higher on Thursday, with the Dow Jones index closing above the 50,000 level during the session.

In earnings, shares of Cisco Systems Inc. (NASDAQ:CSCO) surged 13% on Thursday after the company posted upbeat third-quarter results and issued strong guidance. Dillard's Inc. (NYSE:DDS) reported upbeat earnings for the first quarter.

On the economic data front, U.S. initial jobless claims increased by 12,000 from the previous week to 211,000 during the first week of May, compared to market estimates of 205,000. U.S. import prices increased by 1.9% month-over-month in April, compared to market estimates of a 1% gain. U.S. retail sales rose 0.5% month-over-month in April compared to a revised 1.6% gain in the previous month.

Money markets now fully price out any Fed rate cut in 2026 and assign roughly a 28% probability to a 25 basis-point December hike, a remarkable reversal after April CPI of 3.8% and the hottest PPI print since 2022.

Most sectors on the S&P 500 closed on a positive note, with energy, utilities and information technology stocks recording the biggest gains on Thursday. However, materials and real estate stocks bucked the overall market trend, closing the session lower.

The Dow Jones closed higher by around 370 points to 50,063.46 on Thursday. The S&P 500 surged 0.77% to 7,501.24, while the Nasdaq Composite jumped 0.88% at 26,635.22 during Thursday's session.

Investors are awaiting earnings results from RBC Bearings Inc. (NYSE:RBC), Surgepays Inc. (NASDAQ:SURG) and ARS Pharmaceuticals Inc. (NASDAQ:SPRY) today.

What Is CNN Business Fear & Greed Index?

At a current reading of 66.1, the index remained in the “Greed” zone on Thursday, versus a prior reading of 64.

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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