Fear & Greed Index Shows ‘Extreme Greed’
The recent data from the CNN Money Fear and Greed Index indicates an improved market sentiment. However, the index continues to linger in the “Extreme Greed” zone, reflecting a heightened investor appetite for risk on Monday.
Market Performance and Stock Movements
On Monday, U.S. stocks experienced a downturn as the S&P 500 and Nasdaq Composite retreated from their record highs. Despite last week’s gains, with the Nasdaq rising by 1.74% and the S&P 500 by 0.95%, stocks faced downward pressure at the start of the new week.
While Macy’s, Inc. saw a notable surge of approximately 13.6% following an increased acquisition offer, JOANN Inc. faced a stark decline of around 44% amid speculations about a potential bankruptcy filing to revamp its financial position.
Market Sector Performance
Most sectors within the S&P 500 fared positively, with utilities, real estate, and materials showing notable gains. In contrast, communication services and consumer discretionary stocks diverged from the prevailing upbeat sentiment, closing lower after Monday’s trading session.
Key Market Index Closures
The Dow Jones concluded the day with a 98-point drop to 38,989.83, while the S&P 500 and Nasdaq Composite also fell by 0.12% and 0.41%, respectively, settling at 5,130.95 and 16,207.51.
Earnings Reports in Focus
Investors are eagerly anticipating earnings updates from Nordstrom, Inc., NIO Inc., Target Corporation, and Ross Stores, Inc. for further market insights today.
Understanding the Fear & Greed Index
The Fear & Greed Index offers a window into current market sentiment, with fear and greed playing a crucial role in influencing stock prices. This index, ranging from 0 to 100, utilizes seven equally weighted indicators to gauge the prevailing sentiment. A reading of 78.8 on Monday underscores the market’s strong bias toward greediness within the investment community.