Markets Turn More Bullish Following Powell Remarks

The CNN Money Fear and Greed index showed a sharp improvement in overall market sentiment following comments from Federal Reserve Chair Jerome Powell.

Powell suggested the central bank could begin easing back on its interest rate hikes starting as early as next month.

"It makes sense to moderate the pace of our rate increases as we approach the level of restraint that will be sufficient to bring inflation down," Powell said, during his speech at the Brookings Institution in Washington, D.C.

The Dow jumped 737 points to close at 34,589.77 on Wednesday. The S&P 500 surged 3.09% to 4,080.11, while the Nasdaq Composite climbed 4.41% to settle at 11,468.00 in the previous session.

Dollar General Corporation (NYSE:DG), The Kroger Co. (NYSE:KR) and Ulta Beauty, Inc. (NASDAQ:ULTA) are set to report quarterly earnings today.

At a current reading of 70.0, the index remained in the "Greed" zone, compared to a previous reading of 61.0.

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 greediness.