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

U.S. stocks settled lower on Wednesday, with the Dow Jones index falling more than 150 points during the session. The S&P 500 fell for the second session in a row amid decline in Nvidia ( NVDA ) and Oracle shares.

On the economic front, sales of new single-family homes in the U.S. jumped by 20.5% from the previous month to an annualized rate of 800,000 units in August. Building permits in the U.S. declined by 2.3% to an annualized rate of 1.330 million in August.

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

The Dow Jones closed lower by around 172 points to 46,121.28 on Wednesday. The S&P 500 fell 0.28% to 6,637.97, while the Nasdaq Composite dipped 0.33% at 22,497.86 during Wednesday's session.

Investors are awaiting earnings results from Costco Wholesale Corporation ( COST ) , Accenture Plc ( ACN ) and Jabil Inc ( JBL ) today.

At a current reading of 56.8, the index remained in the “Greed” zone on Wednesday, versus a prior reading of 58.5.

What is CNN Business Fear & Greed Index?

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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