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Why are spinning animations typically used for loading sequences?

Why are spinning animations typically used for loading sequences?
  1. Why do loading screens spin?
  2. What is the spinning loading thing called?

Why do loading screens spin?

The spinning indicates as you mentioned, a feedback to the user that the it is busy and working on loading/getting whatever that was requested. To your own question, let me ask you this - How will you know that the computer is busy working on your request if it wasn't animated?

What is the spinning loading thing called?

A throbber, also known as a loading icon, is an animated graphical control element used to show that a computer program is performing an action in the background (such as downloading content, conducting intensive calculations or communicating with an external device).

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