The CNN Money Fear and Greed index showed a decline in the overall market sentiment, with the index moving to the "Fear" zone on Wednesday.

U.S. stocks closed mixed on Wednesday, with the S&P 500 hitting fresh highs during shortened trading session. The New York Stock Exchange closed early at 1 p.m. ET on Wednesday, while the exchange was also closed on Thursday for Independence Day.

ADP data showed lesser-than-expected private payroll growth in June, while weekly jobless claims came in higher than expectations.

Tesla, Inc. (NASDAQ:TSLA) shares surged 6.5% on Wednesday after Wedbush raised its price target on the stock from $275 to $300. The company's stock also climbed on Tuesday following the company's delivery figures.

Most sectors on the S&P 500 closed on a positive note, with materials, information technology, and utilities stocks recording the biggest gains on Wednesday. However, healthcare and consumer staples stocks bucked the overall market trend, closing the session lower.

The Dow Jones closed lower by around 24 points to 39,308.00 on Wednesday. The S&P 500 rose 0.51% at 5,537.02, while the Nasdaq Composite climbed 0.88% at 18,188.30 during Wednesday's session.

What is CNN Business Fear & Greed Index?

At a current reading of 44.3, the index moved to the "Fear" zone on Wednesday, versus a prior reading of 48.

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.