Dow up 1% on Bullish Stock Market as Fear Index Ticks Toward Greed

Quick overview

All three major U.S. stock indices rose on Wednesday as tech stocks rallied and the Fear and Greed Index moved higher into Greed territory.

Stocks were pushed higher on Wednesday thanks to a strong performance by Advanced Micro Devices (AMD) and substructure service Phoenix Asia Holdings (PHOE). The Dow added 1% while the S&P 500 gained 0.9%. The Nasdaq Composite rose to a fresh high on gains of 1.5% for the day.

AMD rose 17% Wednesday on strong quarterly results while Phoenix Asia climbed 168% on acquisition news. A round of decent earnings among stock market leaders recently has helped push the market to new highs, and the Nasdaq set a record on Wednesday that came just as oil prices dropped once more.

Falling Oil, Iran Tensions, and a Rallying Stock Market

U.S. President Donald Trump posted to social media this week that operations in Iran would be paused for now to determine if the United States and Iran can come to an agreement that would result in peace for the region around the Strait of Hormuz. The United States’ Operation Epic Fury has been put on hold and could be concluded if Iran agrees to the U.S.’ terms.

Talk of peace this week resulted in plunging oil prices, and West Texas Intermediate fell 7% and is now at $94 a barrel. Brent crude fell 7.84% and dropped to $102 a barrel on Wednesday. The drastically lower prices allowed stocks to breathe and recent earnings reports to have an incredibly positive effect on the market.

AMD stock surged this week after the company posted very positive earnings. Their growth indicates that they are not a minor competitor for Nvidia (NVDA) but rather a major player in the AI market at a time when that sector is rapidly expanding. This bodes well for the market, as it indicates less worry from shareholders about capex spending and more confidence in the growth of the sector.

The stock market Fear and Greed Index (VIX) moved from Extreme Fear last month to Greed this month. The positive movement points toward a bullish market that is not done setting new highs. The top performing stocks on the market for now are mostly in the tech sector, which means stocks on the S&P 500 and especially the Nasdaq Composite tend to do the best since those indices are weighted toward technology futures.

ABOUT THE AUTHOR See More

Timothy St. John

Financial Writer - European & US Desks

Timothy St John is a seasoned financial analyst and writer, catering to the dynamic landscapes of the US and European markets. Boasting over a decade of extensive freelance writing experience, he has made significant contributions to reputable platforms such as Yahoo!Finance, business.com: Expert Business Advice, Tips, and Resources - Business.com, and numerous others. Timothy's expertise lies in in-depth research and comprehensive coverage of stock and cryptocurrency movements, coupled with a keen understanding of the economic factors influencing currency dynamics. Timothy majored in English at East Tennessee State University, and you can find him on LinkedIn.

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