Nasdaq Jumps Over 100 Points Amid Strong Earnings: Investor Sentiment Declines, Greed Index Remains In 'Fear' Zone

The CNN Money Fear and Greed index showed an increase in the overall fear level, while the index remained in the “Fear” zone on Wednesday.U.S. stocks settled mostly higher on Wednesday, as the Nasdaq Composite gained more than 100 points during the session with investor optimism lifted by strong bank and corporate earnings alongside growing expectations for further Federal Reserve rate cuts — keeping trade concerns sidelined for now.Among major earnings reports, Bank of America Corp. (NYSE:BAC) and Morgan Stanley (NYSE:MS) both topped the Street's expectations.Markets are now fully pricing in a 25-basis-point rate cut in October, with 95% odds of another reduction in December, fueling rallies in both equities and precious metals.On the economic data front, the NY Empire State Manufacturing Index climbed 19.4 points to a reading of 10.7 in October, also topping market expectations of -1.0.Most sectors on the S&P 500 closed on a positive note, with real estate, utilities and communication services stocks recording the biggest gains on Wednesday. However, materials and industrials stocks bucked the overall market trend, closing the session lower.The Dow Jones closed lower by around 17 points to 46,253.31 on Wednesday. The S&P 500 rose 0.40% to 6,671.06, while the Nasdaq Composite jumped 0.66% to 22,670.08 during Tuesday's session.Investors are awaiting earnings results from Charles Schwab Corp. (NYSE:SCHW), Travelers Companies Inc. (NYSE:TRV) and US Bancorp (NYSE:USB) today.What is CNN Business Fear & Greed Index?At a current reading of 29.7, the index remained in the “Fear” zone on Wednesday, versus a prior reading of 31.8.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. Top 2 Financial Stocks That May Collapse This Quarter Photo via Shutterstock