The CNN Money Fear and Greed index showed some improvement in the overall market sentiment, while the index moved to the “Extreme Greed” zone on Thursday.

U.S. stocks settled higher on Thursday, with the S&P 500 surging to a fresh closing record during the session.

PepsiCo Inc. ( PEP ) shares climbed more than 7% following better-than-expected earnings. United Airlines Holdings Inc. ( UAL ) shares added over 3% after the airline topped earnings estimates.

On the economic data front, U.S. initial jobless claims declined by 7,000 from the previous week to 221,000 in the recent week, compared to market expectations of 235,000. U.S. retail sales rose 0.6% month-over-month in June, topping market expectations of a 0.1% increase. U.S. export prices increased 0.5% month-over-month in June, while import prices rose 0.1% in June.

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

The Dow Jones closed higher by 230 points to 44,484.49 on Thursday. The S&P 500 rose 0.54% to 6,297.36, while the Nasdaq Composite gained 0.75% at 20,885.65 during Thursday's session.

Investors are awaiting earnings results from American Express Co. ( AXP ) , 3M Co. ( MMM ) and Schlumberger Ltd. today.

What is CNN Business Fear & Greed Index?

At a current reading of 75.1, the index moved to the “Extreme Greed” zone on Thursday, versus a prior reading of 73.8.

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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