The CNN Money Fear and Greed index showed a further decline in the overall market sentiment, while the index remained in the “Fear” zone on Wednesday.

U.S. stocks settled lower on Wednesday, with the Dow Jones index falling more than 900 points during the session following renewed U.S.-Iran strikes in the Strait of Hormuz. The move came after President Donald Trump threatened additional strikes against Iran.

On the economic data front, the annual inflation rate in the U.S. accelerated to 4.2% in May, recording its highest level since April 2023, compared to 3.8% in the previous month, and in line with market estimates.

On the earnings front, Core & Main Inc. (NYSE:CNM) reported upbeat earnings for the first quarter on Wednesday. Cracker Barrel Old Country Store Inc. (NASDAQ:CBRL) shares jumped more than 22% on Wednesday after the company reported better-than-expected third-quarter financial results and raised its FY26 sales guidance above estimates.

Most sectors on the S&P 500 closed on a negative note, with industrials, materials and information technology stocks recording the biggest losses on Wednesday. However, consumer staples and energy stocks bucked the overall market trend, closing the session higher.

The Dow Jones closed lower by around 953 points to 49,918.78 on Wednesday. The S&P 500 fell 1.62% to 7,266.99, while the Nasdaq Composite dipped 1.98% at 25,169.50 during Wednesday's session.

Investors are awaiting earnings results from Driven Brands Holdings Inc. (NASDAQ:DRVN), Adobe Inc. (NASDAQ:ADBE) and Lennar Corp. (NYSE:LEN) today.

What Is CNN Business Fear & Greed Index?

At a current reading of 27.6, the index remained in the “Fear” zone on Wednesday, versus a prior reading of 32.5.

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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