Dow Falls Over 100 Points After PCE Data, Investor Sentiment Weakens, Fear & Greed Index Enters Neutral Zone

The CNN Money Fear & Greed Index showed overall market sentiment declining, with the index entering the "Neutral" zone on Wednesday.

U.S. stocks closed lower on Wednesday, with the Dow Jones Industrial Average falling more than 100 points after the release of PCE inflation data.

The Personal Consumption Expenditures price index rose 0.2% month-over-month in July, in line with expectations of 0.1%, while the annual rate held at 3.7%, above the 3.6% estimate. Core PCE rose 3.3% year-over-year, still well above the Federal Reserve's 2% target.

J.M. Smucker Co. shares rose more than 4% on Wednesday after the company reported better-than-expected first-quarter financial results and raised its FY27 guidance above expectations.

After the market close on Wednesday, Nvidia Corp. reported better-than-expected second-quarter financial results and issued strong revenue guidance for the current quarter.

Most sectors of the S&P 500 closed lower on Wednesday, with healthcare, communication services, and consumer discretionary stocks recording the largest declines. However, industrials and utilities stocks bucked the trend and closed higher.

The Dow Jones Industrial Average closed down approximately 114 points at 53,463.88 on Wednesday. The S&P 500 fell 0.02% to 7,675.70, and the Nasdaq Composite declined 0.08% to 26,130.20.

Investors are awaiting earnings results from Best Buy Co Inc., Dollar General Corp., and Ulta Beauty Inc. today.

What is the CNN Business Fear & Greed Index?

The Fear & Greed Index currently reads 55, entering the "Neutral" zone on Wednesday, down from a previous reading of 57.

The Fear & Greed Index is a measure of current market sentiment. It is based on the premise that higher fear puts 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 represents maximum greed.