Dow Jumps Over 250 Points As Fed Cuts Rates: Investor Sentiment Edges Lower, Fear Index Remains In 'Greed' Zone

The CNN Money Fear and Greed index showed a slight decline in the overall market sentiment, while the index remained in the “Greed” zone on Wednesday.

U.S. stocks settled mixed on Wednesday, with the Dow Jones index gaining more than 250 points during the session as the Federal Reserve implemented its first interest rate cut of the year.

The Federal Reserve delivered a 25-basis-point rate cut and Fed Chair Jerome Powell signaled more easing could be coming — a shift partly driven by a cooling labor market and growing downside risks to employment.

General Mills Inc. GIS reported fiscal 2026 first-quarter results that came in slightly ahead of Wall Street expectations. Manchester United plc MANU shares fell more than 6% on Wednesday after the company reported mixed fourth-quarter financial results.

On the economic front, U.S. housing starts dipped 8.5% month-over-month to an annual rate of 1.307 million units in August, following a revised 1.429 million in the previous month and down from market estimates of 1.37 million. Building permits declined by 3.7% to an annualized rate of 1.312 million in August.

Most sectors on the S&P 500 closed on a positive note, with consumer staples, financial and materials stocks recording the biggest gains on Monday. However, information technology and industrials stocks bucked the overall market trend, closing the session lower.

The Dow Jones closed higher by around 260 points to 46,018.32 on Wednesday. The S&P 500 fell 0.10% to 6,600.35, while the Nasdaq Composite fell 0.33% to 22,261.33 during Monday’s session.

Investors are awaiting earnings results from Darden Restaurants Inc DRI, Factset Research Systems Inc FDS and FedEx Corp FDX today.

What is CNN Business Fear & Greed Index?

At a current reading of 57.3, the index moved to the “Greed” zone on Wednesday, versus a prior reading of 57.5.

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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