The CNN Money Fear and Greed index showed that the overall market sentiment remained stable, while the index held in the "Neutral" zone on Thursday.

U.S. stocks settled mostly higher on Wednesday, with the Dow Jones and S&P 500 rising and the Nasdaq Composite ending the day in the red.

In earnings, shares of Lululemon Athletica Inc. (NASDAQ:LULU) tanked almost 12% in extended trading on Thursday, after the company reported its first-quarter revenue ahead of expectations but missed the earnings estimates and announced disappointing guidance. Docusign Inc.'s (NASDAQ:DOCU) shares declined to close 5% on the company's in-line guidance, despite reporting its first-quarter fiscal 2027 results higher than expected.

On the economic data front, initial jobless claims for the last week of May rose by 13,000 to 225,000, above market expectations of 212,000. This represented the highest initial claims since the first week of February. Continuing jobless claims in the US declined to 1,777,000 in the week ending May 23, from the previous week's 1,785,000 count.

Sectors on the S&P 500 closed mostly higher, with health care, financials, and communication services stocks recording the biggest gains on Thursday. However, information technology and consumer staples stocks closed the session lower.

The Dow Jones climbed 1.73%, or 874.86 points, to close at 51,561.93 on Thursday. The S&P 500 rose 0.41% to settle at 7,584.31, while the Nasdaq Composite bucked the trend and declined by 0.09% to 26,830.96.

Investors are awaiting earnings results from ABM Industries Inc. (NYSE: ABM), G-III Apparel Group Ltd. (NASDAQ:GIII) and StealthGas Inc. (NASDAQ:GASS) today.

What Is CNN Business Fear & Greed Index?

At a current reading of 54, the index remained in the “Neutral” zone on Thursday.

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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