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

U.S. stocks settled mostly lower on Wednesday, with the Nasdaq Composite falling around 100 points during the session amid signs of progress in U.S.-China trade negotiations and cooler-than-expected inflation data.

President Donald Trump announced that a new trade agreement with China had been reached, pending final signatures from him and Chinese President Xi Jinping.

On the economic front, the Bureau of Labor Statistics reported that annual consumer inflation rose to 2.4% in May, slightly below the 2.5% forecast. Core inflation held steady at 2.8%, also coming in softer than expected.

Shares of Chewy, Inc ( CHWY ). fell 11% on Wednesday after the company reported first-quarter financial results and issued FY25 sales guidance below estimates.

Most sectors on the S&P 500 closed on a negative note, with materials, communication services and consumer discretionary stocks recording the biggest losses on Wednesday. However, energy and utilities stocks bucked the overall market trend, closing the session higher.

The Dow Jones closed lower by around 1 point to 42,865.77 on Wednesday. The S&P 500 fell 0.27% to 6,022.24, while the Nasdaq Composite dipped 0.50% at 19,615.88 during Wednesday's session.

Investors are awaiting earnings results from America’s Car-Mart Inc. , Adobe Inc. ( ADBE ) and RH today.

What is CNN Business Fear & Greed Index?

At a current reading of 62.1, the index remained in the “Greed” zone on Wednesday, versus a prior reading of 63.6.

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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