The CNN Money Fear and Greed index showed some easing in the overall fear level, while the index moved to the “Fear” zone on Wednesday.

U.S. stocks settled higher on Wednesday, with the Dow Jones index gaining more than 400 points during the session as expectations for a rate cut next week strengthened after weaker-than-expected private employment data.

The ADP report showed U.S. private employers shed 32,000 jobs in November, reversing the 42,000 added in October and missing forecasts for a 5,000 gain. The data reinforced signs that the labor market is cooling.

The S&P Global services PMI declined to 54.1 in November from 54.8 in the prior month, and was revised lower from the preliminary reading of 55. U.S. industrial production increased 0.1% month-over-month in September compared to a revised 0.3% decline in August.

Microchip Technology Inc. ( MCHP ) jumped nearly 12% — the best performance in the S&P 500 — after the company raised its fiscal third-quarter earnings outlook. Macy’s Inc. posted better-than-expected sales and profit for the third quarter. Dollar Tree Inc. ( DLTR ) delivered stronger-than-expected quarterly results and healthy sales growth.

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

The Dow Jones closed higher by around 408 points to 47,882.90 on Wednesday. The S&P 500 gained 0.30% to 6,849.72, while the Nasdaq Composite climbed 0.17% to 23,454.09 during Wednesday's session.

Investors are awaiting earnings results from Kroger Co. ( KR ) , Dollar General Corp. ( DG ) and Hormel Foods Corp. ( HRL ) today.

What is CNN Business Fear & Greed Index?

At a current reading of 26.1, the index moved to the “Fear” zone on Wednesday, versus a prior reading of 23.2.

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.

Read Next:

Top 2 Industrials Stocks That May Fall Off A Cliff This Quarter

Photo courtesy: Shutterstock