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

U.S. stocks settled sharply higher on Wednesday, with the Dow Jones index jumping more than 2,900 points during the session.

The S&P 500 also jumped 9.52% to record its biggest single-day surge since 2008 as investors cheered a surprise announcement from President Donald Trump: a 90-day pause on tariffs for countries that have not retaliated against U.S. trade measures.

However, Trump’s latest Truth Social post slammed China for showing "a lack of respect" and declared an immediate 125% tariff hike on Chinese goods.

Apple Inc. ( AAPL ) shares jumped over 15%, while Nvidia Corp. ( NVDA ) surged around 19% on Wednesday. Shares of Tesla Inc. ( TSLA ) also jumped more than 22% during the session.

On the economic data front, U.S. mortgage application volumes climbed by 20% from the previous week during the first week of April.

All sectors on the S&P 500 closed on a positive note, with consumer discretionary, information technology, and communication services stocks recording the biggest gains on Wednesday.

The Dow Jones closed higher by around 2,963 points to 40,608.45 on Wednesday. The S&P 500 jumped 9.52% to 5,456.90, while the Nasdaq Composite jumped 12.16% to 17,124.97 during Wednesday's session.

Investors are awaiting earnings results from CarMax Inc. ( KMX ) , The Lovesac Co. ( LOVE ) , and Northern Technologies International Corp. ( NTIC ) today.

What is CNN Business Fear & Greed Index?

At a current reading of 16.5, the index remained in the “Extreme Fear” zone on Wednesday, versus a prior reading of 3.4.

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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