Nasdaq Gains Over 300 Points Following Inflation Data: Investor Sentiment Declines, Greed Index Moves To 'Fear' Zone

The CNN Money Fear and Greed index showed a decline in the overall market sentiment, while the index moved to the “Fear” zone on Thursday. U.S. stocks settled higher on Thursday, with the Nasdaq Composite gaining more than 300 points during the session as risk appetite snapped back after a cooler-than-expected inflation report revived hopes for rate cuts and a blowout earnings outlook from Micron Technology Inc. (NASDAQ:MU) eased AI bubble fears. Micron Technology rocketed 10% on Thursday after beating estimates and issuing a bullish outlook. Accenture Plc (NYSE:ACN) also posted better-than-expected first-quarter 2026 results on Thursday. The Consumer Price Index rose by 2.7% year-over-year in November 2025, cooling from the previous 3% and well below the expected 3.1%. Meanwhile, core inflation — which excludes both food and energy items — slumped from 3% to 2.6% annually, marking the lowest reading since March 2021. On the other economic data front, the Philadelphia Fed Manufacturing Index declined 8.5 points to a reading of -10.2 in December, compared to a reading of -1.7 in November and missing market estimates of -3.1. U.S. initial jobless claims fell by 13,000 from the previous week to 224,000 in the week ending Dec. 13. Most sectors on the S&P 500 closed on a positive note, with information technology, communication services and consumer discretionary stocks recording the biggest gains on Thursday. However, consumer staples and energy stocks bucked the overall market trend, closing the session lower. The Dow Jones closed higher by around 66 points to 47,951.85 on Thursday. The S&P 500 rose 0.79% to 6,774.76, while the Nasdaq Composite jumped 1.38% to 23,006.36 during Thursday's session. Investors are awaiting earnings results from Conagra Brands Inc. (NYSE:CAG), Paychex Inc. (NASDAQ:PAYX) and Carnival Corp. (NYSE:CCL) today. What is CNN Business Fear & Greed Index? At a current reading of 43.7, the index moved to the “Fear” zone on Thursday, versus a prior reading of 46.9. 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. Read Next: Wall Street’s Most Accurate Analysts Give Their Take On 3 Materials Stocks Delivering High-Dividend Yields Photo via Shutterstock