The CNN Money Fear and Greed index showed further improvement in the overall market sentiment, but the index remained in the “Fear” zone on Thursday.

U.S. stocks settled higher on Thursday, with the S&P 500 recording gains for the sixth consecutive session. The index is now down around 2% from its record after gaining more than 3% this week.

On the economic data front, U.S. retail sales gained 1% month-over-month in July versus a revised 0.2% decline in June and higher than market estimates of a 0.3% gain. U.S. initial jobless claims declined by 7,000 to 227,000 in the week ending August 10, versus market estimates of 235,000. The NY Empire State Manufacturing Index rose to -4.7 in August, notching the highest level in six months.

Alibaba Group Holding Limited ( BABA ) reported downbeat sales for its fiscal first quarter. Walmart Inc ( WMT ) announced strong second-quarter results and raised full-year guidance. Shares of Cisco Systems, Inc. ( CSCO ) rose 6.8% during Thursday’s session following better-than-expected quarterly earnings.

Most sectors on the S&P 500 closed on a positive note, with consumer discretionary, information technology, and materials stocks recording the biggest gains on Thursday. However, real estate and utilities stocks bucked the overall market trend, closing the session lower.

The Dow Jones closed higher by around 555 points to 40,563.06 on Thursday. The S&P 500 rose 1.61% to 5,543.22, while the Nasdaq Composite gained 2.34% at 17,594.50 during Thursday's session.

Investors are awaiting earnings results from Madison Square Garden Entertainment Corp. ( MSGE ) , CI&T Inc ( CINT ). , and Flowers Foods, Inc ( FLO ). today.

What is CNN Business Fear & Greed Index?

At a current reading of 32.9, the index remained in the “Fear” zone on Thursday, versus a prior reading of 27.6.

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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