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

U.S. stocks settled higher on Thursday, with the Nasdaq Composite gaining more than 300 points during the session amid a surge in semiconductor stocks.

The U.S. military launched additional strikes on Iran aimed at weakening Tehran’s ability to threaten commercial shipping through the Strait of Hormuz. However, crude oil prices fell after US President Donald Trump said Iran had called to reach an agreement.

PepsiCo Inc. (NASDAQ:PEP) shares fell more than 3% on Thursday after the company reported second-quarter results Thursday that topped revenue expectations but fell just short on adjusted earnings.

On the economic data front, U.S. initial jobless claims declined by 2,000 to 215,000 in the week to July 4, compared to market estimates of 218,000.

Most sectors on the S&P 500 closed on a positive note, with information technology, consumer discretionary and financial 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 139 points to 52,487.41 on Thursday. The S&P 500 surged 0.81% to 7,543.64, while the Nasdaq Composite gained 1.30% to 26,206.89 during Thursday’s session.

Investors are awaiting earnings results from Delta Air Lines Inc (NYSE:DAL) today.

What Is CNN Business Fear & Greed Index?

At a current reading of 47.3, the index moved to the “Neutral” zone on Thursday, versus a prior reading of 44.1.

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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