Dow Jumps More Than 250 Points: Investor Sentiment Improves, Fear & Greed Index Moves To 'Neutral' Zone

Market Sentiment - The CNN Money Fear and Greed index improved, moving to the "Neutral" zone with a current reading of 46.0, up from 43.7 [1][5] - U.S. stocks showed mixed results, with the Dow Jones index gaining over 250 points, closing higher by around 270 points to 49,266.11 [1][4] Defense Sector Performance - Defense stocks experienced significant gains, with Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) jumping 14%, Red Cat Holdings, Inc. (NASDAQ:RCAT) gaining 13%, and Karman Holdings Inc. (NYSE:KRMN) rising 10% [2] - The surge in defense stocks was influenced by President Donald Trump's proposal for a sharp increase in U.S. military spending [1] Economic Data - U.S. initial jobless claims rose by 8,000 to 208,000 for the week ending Jan. 3, slightly below market expectations of 210,000 [3] - The U.S. trade deficit decreased to $29.4 billion in October, the smallest gap since June 2009, compared to a revised $48.1 billion in September and market estimates of $58.1 billion [3] Sector Performance on S&P 500 - Most sectors on the S&P 500 closed positively, with energy, consumer staples, and consumer discretionary stocks showing the largest gains [4] - In contrast, health care and information technology stocks closed lower, bucking the overall market trend [4]