Dow Jumps Over 600 Points On Iran Truce Hopes: Investor Sentiment Improves, Fear Index Remains In 'Greed' Zone

The CNN Money Fear and Greed index showed an improvement in the overall market sentiment, while the index remained in the “Greed” zone on Wednesday.U.S. stocks settled higher on Wednesday, with the Dow Jones index gaining more than 600 points during the session as crude oil prices fell on revived hopes of a U.S.-Iran de-escalation.President Donald Trump said the U.S. is in the “final stage” of negotiations with Iran, while Iran’s Foreign Ministry said exchanges between Tehran and Washington are still ongoing and continue to be based on Iran’s 14-point proposal.On the economic data front, U.S. mortgage applications declined by 2.3% in the second week of May, following a 1.7% gain in the previous period.Most sectors on the S&P 500 closed on a positive note, with materials, information technology and consumer discretionary stocks recording the biggest gains on Wednesday. However, consumer staples and energy stocks bucked the overall market trend, closing the session lower.The Dow Jones closed higher by around 645 points to 50,009.35 on Wednesday. The S&P 500 rose 1.08% to 7,432.97, while the Nasdaq Composite jumped 1.54% at 26,270.36 during Wednesday's session.What Is CNN Business Fear & Greed Index?At a current reading of 60.9, the index remained in the “Greed” zone on Wednesday, versus a prior reading of 59.4.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.Photo via ShutterstockMarket News and Data brought to you by Benzinga APIs© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.To add Benzinga News as your preferred source on Google, click here.