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

U.S. stocks settled higher on Wednesday, with the S&P 500 surging to a new all-time high during the session.

Netflix Inc. ( NFLX ) reported stronger-than-expected fourth-quarter financial results on Tuesday. Procter & Gamble Company ( PG ) posted better-than-expected second-quarter financial results. Abbott Laboratories ( ABT ) reported fourth-quarter sales of $10.97 billion, up 7.2% year over year, missing the consensus of $11.01 billion.

On the economic data front, U.S. mortgage applications rose 0.1% from the previous week in the week ending Jan. 17.

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

The Dow Jones closed higher by around 131 points to 44,156.73 on Wednesday. The S&P 500 rose 0.61% to 6,086.37, while the Nasdaq Composite climbed 1.28% at 20,009.34 during Wednesday's session.

Investors are awaiting earnings results from GE Aerospace , American Airlines Group Inc. ( AAL ) , and Union Pacific Corporation ( UNP ) today.

What is CNN Business Fear & Greed Index?

At a current reading of 43.3, the index remained in the “Fear” zone on Wednesday, versus a prior reading of 41.5.

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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