The CNN Money Fear and Greed index showed some improvement in the overall market sentiment, while the index moved to the “Fear” zone on Monday.
U.S. stocks settled higher on Monday, with the Nasdaq Composite gaining more than 500 points during the session, recording its fifth straight losing session.
The S&P 500 fell around 2% last week, while the Nasdaq tumbled 4.6% in the period. However, the Dow recorded gains, rising 0.6% last week.
Google parent Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL) gained nearly 5% on Monday as the company replaced Verizon Communications Inc. (NYSE:VZ) in the Dow Jones Industrial Average. Shares of Comcast Corp. (NASDAQ:CMCSA) jumped around 4.5% on Monday after the company announced it will separate into two independent publicly traded companies through a tax-free spin-off of NBCUniversal and Sky.
Meanwhile, the Strait of Hormuz de-escalation narrative gained traction as President Donald Trump separately confirmed that "Iran has requested a meeting" set for Doha, with envoys Steve Witkoff and Jared Kushner traveling to Qatar, with U.S. and Iranian technical teams due to meet mediators midweek.
Most sectors on the S&P 500 closed on a positive note, with communication services, consumer discretionary and information technology stocks recording the biggest gains on Monday. However, materials and real estate stocks bucked the overall market trend, closing the session lower.
The Dow Jones closed higher by around 307 points to 52,182.74 on Monday. The S&P 500 surged 1.18% to 7,440.43, while the Nasdaq Composite climbed 2.07% to 25,820.14 during Monday’s session.
Investors are awaiting earnings results from Nike Inc. (NYSE:NKE), Constellation Brands Inc. (NYSE:STZ) and Progress Software Corp. (NASDAQ:PRGS) today.
What Is CNN Business Fear & Greed Index?
At a current reading of 26.5, the index moved to the “Fear” zone on Monday, versus a prior reading of 25.1.
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.
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