Nasdaq Surges Over 400 Points, Fear & Greed Index Enters "Greed" Zone

CNN Money's Fear & Greed Index showed improving overall market sentiment, entering the "Greed" zone on Thursday.

U.S. stocks closed higher on Thursday, driven by a surge in Nvidia's share price, with the Nasdaq Composite rising more than 400 points during the session.

Nvidia shares jumped 8.7% on Thursday after Wednesday's close, following the company's better-than-expected second-quarter financial results and strong revenue guidance for the current quarter.

Dollar General shares rose 2.5% on Thursday after the company reported better-than-expected second-quarter results and raised its fiscal 2026 guidance above market expectations. Veeva Systems Inc shares soared 15% following better-than-expected second-quarter results.

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

Most S&P 500 sectors closed lower on Thursday, with healthcare, consumer staples, and consumer discretionary sectors posting the largest declines. However, the information technology sector closed higher.

The Dow Jones Industrial Average closed up about 106 points on Thursday at 53,569.44. The S&P 500 rose 0.72% to 7,730.99, and the Nasdaq Composite gained 1.57% during Thursday's trading session to 26,541.35.

Investors are awaiting earnings reports from Miniso Group Holding Limited and Frontline Plc, scheduled for release today.

The index's latest reading on Thursday was 58, entering the "Greed" zone, compared with a prior reading of 54.

What is the CNN Business Fear & Greed Index?

The Fear & Greed Index is a metric that measures current market sentiment. It is based on the premise that higher fear puts downward pressure on stock prices, while higher greed has the opposite effect. The index is calculated based on seven equally weighted indicators. The index ranges from 0 to 100, where 0 represents maximum fear and 100 represents maximum greed.