The CNN Money Fear and Greed index showed further improvement in the overall market sentiment, but the index remained in the "Greed" zone on Thursday.

U.S. stocks settled higher on Thursday, with the S&P 500 surging to a fresh record high level during the session.

Micron Technology Inc (NASDAQ:MU) shares jumped around 15% on Thursday after the company reported better-than-expected fourth-quarter financial results. Accenture Plc (NYSE:ACN) reported better-than-expected earnings for its fourth quarter.

On the economic data front, U.S. core PCE prices increased by 2.8% from the prior quarter during the second quarter compared to a 3.7% gain in the previous period. U.S. initial jobless claims fell by 4,000 from the prior week to 218,000 during the period ending September 21, compared to estimates of 225,000. The U.S. economy expanded at an annualized rate of 3% during the second quarter versus a revised 1.6% increase in the first quarter.

Most sectors on the S&P 500 closed on a positive note, with materials, information technology, and financials stocks recording the biggest gains on Thursday. However, energy and real estate stocks bucked the overall market trend, closing the session lower.

The Dow Jones closed higher by around 260 points to 42,175.11 on Thursday. The S&P 500 rose 0.40% to 5,745.37, while the Nasdaq Composite gained 0.60% at 18,190.29 during Thursday's session.

Investors are awaiting earnings results from Moving iMage Technologies, Inc. (NYSE:MITQ) today.

What is CNN Business Fear & Greed Index?

At a current reading of 71.8, the index remained in the "Greed" zone on Thursday, versus a prior reading of 67.1.

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.