The CNN Money Fear and Greed index showed an improvement in overall market sentiment, with the index moving to the “Greed” zone on Thursday.

U.S. stocks settled higher on Thursday, with the Nasdaq Composite gaining more than 400 points during the session following a surge in Nvidia Corp. (NASDAQ:NVDA) stock.

After the closing bell on Wednesday, Nvidia shares jumped 8.7% on Thursday after the company reported better-than-expected second-quarter financial results and issued strong revenue forecast for the current quarter.

Dollar General (NYSE:DG) shares gained 2.5% on Thursday after the company reported better-than-expected second-quarter financial results and raised its FY26 guidance above estimates. Veeva Systems Inc (NYSE:VEEV) shares jumped 15% as the company posted better-than-expected second-quarter results.

On the economic data front, U.S. initial jobless claims declined by 4,000 to 203,000 in the third week of August, compared to market estimates of 208,000. U.S. wholesale inventories climbed by 1.3% month-over-month to $959.1 billion in July, following a revised 0.3% gain in June. The US goods trade deficit rose to $118.8 billion in July from $101.4 billion in the previous month.

Most sectors on the S&P 500 closed on a negative note, with health care, consumer staples and consumer discretionary stocks recording the biggest losses on Thursday. However, information technology stocks closed the session higher.

The Dow Jones closed higher by around 106 points to 53,569.44 on Thursday. The S&P 500 gained 0.72% to 7,730.99, while the Nasdaq Composite climbed 1.57% at 26,541.35 during Thursday’s session.

Investors are awaiting earnings results from MINISO Group Holding Ltd – ADR (NYSE:MNSO) and Frontline Plc (NYSE:FRO) today.

At a current reading of 58, the index moved to the “Greed” zone on Thursday, versus a prior reading of 54.

What is CNN Business Fear & Greed Index?

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.

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