The CNN Money Fear and Greed index displayed a further improvement in overall market sentiment, staying in the "Greed" zone on Wednesday.
U.S. stocks closed higher on Tuesday after the Federal Reserve announced its policy decision to keep interest rates unchanged between 5.25% and 5.5% at its March meeting, as expected by investors.
The Fed's decision confirmed its intention to lower the cost of borrowing in the coming months.
However, Signet Jewelers Limited (NYSE: SIG) shares fell 12% on Wednesday after reporting weaker-than-expected fourth-quarter sales and issuing a disappointing FY25 guidance.
In contrast, General Mills, Inc. (NYSE: GIS) reported better-than-expected fourth-quarter financial results.
In economic news, U.S. crude oil inventories declined by 1.952 million barrels in the week ended March 15, compared to market estimates of a 0.013 million barrel gain.
Most sectors on the S&P 500 closed positively, with communication services, consumer discretionary, and financial stocks recording the largest gains on Wednesday.
However, healthcare and energy stocks deviated from the overall market trend, closing lower. The Dow Jones closed higher by over 401 points at 39,512.13 on Tuesday.
The S&P 500 rose 0.89% to 5,224.62, while the Nasdaq Composite climbed 1.25% to 16,369.41 during Wednesday's session.
Investors are anticipating earnings results from Accenture plc (NYSE: ACN), FedEx Corporation (NYSE: FDX), and NIKE, Inc. (NYSE: NKE) today.
With a current reading of 72.6, the index remained in the "Greed" zone on Wednesday, compared to a previous reading of 70.
The Fear & Greed Index serves as a measure of the prevailing market sentiment. It operates on the principle that heightened fear typically leads to lower stock prices, whereas increased greed tends to drive prices higher.
The index is calculated based on seven equally weighted indicators and ranges from 0 to 100, where 0 signifies maximum fear and 100 indicates maximum greediness.