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Dow Gains For Third Session Following Fed Decision: Investor Sentiment Improves, Greed Index Remains In ‘Fear’ Zone

Reviewed by ClearTape · Source: Benzinga

Key takeaways

  • Fed

    The Federal Reserve — the US central bank that influences interest rates and money conditions.

    Learn more →

    rate hold, upbeat earnings, and a rebound in mortgage applications lift market sentiment and broaden the rally, keeping the Fear & Greed Index in the “Fear” zone but higher.
  • Dow up 98 points to 52,475.10
  • S&P 500 up 0.28% to 7,743.98
  • Nasdaq up 0.27% to 26,549.85

What happened

The U.S. stock market finished higher on Wednesday, with the Dow Jones Industrial Average up about 98 points to 52,475.10, the S&P 500 up 0.28% to 7,743.98, and the Nasdaq Composite up 0.27% to 26,549.85. The rise followed the Federal Reserve’s decision to keep its benchmark interest rate unchanged at 3.75%-4%, matching expectations after a 3‑year pause on hikes. Investor sentiment improved as the CNN Money Fear & Greed Index climbed to 36, still in the “Fear” zone but up from 33. On the…

Why it matters

The

Fed

The Federal Reserve — the US central bank that influences interest rates and money conditions.

Learn more →

’s rate hold signals that monetary policy is still tight, which supports a more stable equity environment and reassures investors that borrowing costs will not rise further in the near term. The positive earnings surprises from SK Hynix, Brinker and Vertiv add momentum to their respective sectors—technology,…

Short-term and longer-term

Short-term. Over the next few days, watch for earnings from Amazon, Eli Lilly and Caterpillar, which could confirm or shift the current upside bias.

Longer-term. For the coming months, the combination of steady rates, solid earnings from key sectors, and a rebound in mortgage applications suggests a favorable backdrop for long‑term equity growth.

Words on this card

Fear & Greed Index
A metric that measures market sentiment based on seven equal‑weighted indicators, ranging from 0 (maximum fear) to 100 (maximum greed).
Benchmark interest rate
The federal funds rate set by the Federal Reserve, which influences borrowing costs across the economy.
Mortgage applications
The number of new requests for home loans submitted by consumers, indicating housing market demand.
Earnings guidance
A company’s forecast for future financial performance, used by investors to assess growth prospects.
Fed Learn
The Federal Reserve — the US central bank that influences interest rates and money conditions.
Earnings Learn
A company’s results report — usually profit and sales for a quarter, plus any update on what comes next.

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