The CNN Money Fear and Greed index showed an increase in the overall fear level, while the index moved to the “Extreme Fear” zone on Thursday.
U.S. stocks settled lower on Thursday, with the Dow Jones index falling more than 700 points during the session as surging crude oil prices amplified stagflation fears linked to the escalating conflict in Iran.
In his first TV appearance, Iran’s Supreme Leader Mojtaba Khamenei reitered that the Strait of Hormuz remain closed — a chokepoint carrying roughly 20% of global oil supply.
In earnings, shares of Dollar General Corp. (NYSE:DG) fell around 6% on Thursday after the company released earnings results for the fourth quarter. Netskope Inc. (NASDAQ:NTSK) shares dipped over 21% after the company reported fourth-quarter financial results.
On the economic data front, U.S. initial jobless claims declined by 1,000 from the previous week to 213,000 in the first week of March, compared to market estimates of 215,000. The U.S. trade deficit shrank to $54.5 billion in January following a revised $72.9 billion gap in December.
Most sectors on the S&P 500 closed on a negative note, with industrials, consumer discretionary and health care stocks recording the biggest losses on Thursday. However, energy and utilities stocks bucked the overall market trend, closing the session higher.
The Dow Jones closed lower by around 739 points to 46,677.85 on Thursday. The S&P 500 fell 1.52% to 6,672.62, while the Nasdaq Composite dipped 1.78% at 22,311.98 during Thursday’s session.
Investors are awaiting earnings results from Buckle Inc. (NYSE:BKE) and Emerald Holding Inc. (NYSE:EEX) today.
What Is CNN Business Fear & Greed Index?
At a current reading of 21.2, the index moved to the “Extreme Fear” zone on Thursday, 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.
Photo via Shutterstock
Recent Comments