Nasdaq Jumps Nearly 500 Points On Iran Peace Deal Hopes: Investor Sentiment Improves, Greed Index Remains In ‘Fear’ Zone

The CNN Money Fear and Greed index showed an improvement in the overall market sentiment, while the index remained in the “Fear” zone on Thursday.

U.S. stocks settled higher on Thursday, with the Nasdaq Composite surging almost 500 points during the session, led by a sharp rally in semiconductors, as a signed U.S.-Iran peace deal sent oil tumbling.

Intel Corp. (NASDAQ:INTC) surged more than 10% on Thursday after President Donald Trump said on Truth Social that Apple Inc. (NASDAQ:AAPL) had agreed to work with Intel to design and build its chips in America,

The Federal Reserve, on Wednesday, unanimously held the federal funds rate steady at 3.50%-3.75%, as widely expected, in the first policy meeting under new Fed Chair Kevin Warsh. The Fed’s closely watched dot plot showed that several officials now expect interest rates to rise in 2026.

The Fed penciled in higher inflation, a lower unemployment rate and one hike this year, marking a hawkish shift from the March dot plot, which had signaled one additional rate cut.

On the economic data front, U.S. initial jobless claims fell by 4,000 to 226,000 in the second week of June, compared to market estimates of 225,000. The Philadelphia Fed manufacturing index rose to 10.3 in June from -0.4 in the previous month, compared to market estimates of 10.

Most sectors on the S&P 500 closed on a negative note, with energy, financial and health care stocks recording the biggest losses on Thursday. However, consumer discretionary and information technology stocks closed the session higher.

The Dow Jones closed higher by around 72 points to 51,564.70 on Thursday. The S&P 500 surged 1.08% to 7,500.58, while the Nasdaq Composite jumped 1.91% at 26,517.93 during Thursday’s session.

The S&P 500 rose 0.9% last week, recording its 11th winning week in 12. The Dow gained 0.7%, while the Nasdaq surged 2.4% during the period.

Investors are awaiting earnings results from Outdoor Holding Co. (NASDAQ:POWW) and Fervo Energy (NASDAQ:FRVO) today.

What Is CNN Business Fear & Greed Index?

At a current reading of 37.3, the index remained in the “Fear” zone on Thursday, versus a prior reading of 32.2.

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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