Dow Jumps Over 600 Points On Fed Rate Bets: Investor Sentiment Improves, Fear & Greed Index Remains In 'Neutral' Zone

Market Overview - U.S. stocks experienced a significant rally, with all three major equity benchmarks (S&P 500, Nasdaq 100, and Dow Jones) reaching record highs as investors showed increased interest in risk assets amid expectations of falling interest rates [2] - The Dow Jones closed higher by approximately 617 points at 46,108.00, while the S&P 500 rose by 0.85% to 6,587.47, and the Nasdaq Composite gained 0.72% to 22,043.07 during the session [4] Economic Indicators - The CNN Money Fear and Greed index improved to a reading of 52.9, remaining in the "Neutral" zone, up from a previous reading of 49.9 [5] - U.S. inflation accelerated to 2.9% year-over-year in August, and weekly jobless claims increased to 263,000, marking the highest level since October 2021 [2] Company Performance - Kroger Co. reported better-than-expected second-quarter earnings, indicating strong performance in the retail sector [3] - The Lovesac Co. saw a decline of around 15% after cutting its FY2026 GAAP EPS guidance and narrowing its sales outlook, reflecting challenges in its business outlook [3] Sector Performance - Most sectors within the S&P 500 closed positively, with consumer discretionary, health care, and materials stocks showing the largest gains [3] - Energy stocks, however, diverged from the overall market trend, closing slightly lower [3]