Dow Closes at Record High, Nasdaq Surges 2%, but Fear & Greed Index Signals Investors Are Still Playing It Safe

by | Aug 4, 2026 | General

The CNN Money Fear and Greed index showed an improvement in the overall market sentiment, while the index remained in the “Neutral” zone on Monday.

U.S. stocks settled higher on Monday, with the Dow Jones index jumping to a record close on the first trading day of August.

Crude oil prices tumbled and Treasury yields retreated from 18-month highs, after President Donald Trump called off a planned military strike on Iran over the weekend and said negotiations would resume.

On the earnings front, shares of CNH Industrial NV (NYSE:CNH) gained over 5% on Monday after the company reported better-than-expected second-quarter financial results and raised its FY26 adjusted EPS guidance with its midpoint above estimates. Makemytrip Ltd (NASDAQ:MMYT) gained more than 8% after the company reported better-than-expected first-quarter adjusted EPS results.

On the economic data front, the ISM manufacturing PMI jumped to 55.6 in July from 53.3, the strongest factory expansion since May 2022 and well above the 54.0 consensus, with the employment index returning to expansion at 52.8.

Most sectors on the S&P 500 closed on a positive note, with industrials, communication services and consumer discretionary stocks recording the biggest gains on Monday. However, energy and consumer staples stocks bucked the overall market trend, closing the session lower.

The Dow Jones closed higher by around 693 points to 53,178.41 on Monday. The S&P 500 climbed 1.48% to 7,600.50, while the Nasdaq Composite jumped 2.13% at 25,913.90 during Monday’s session.

Investors are awaiting earnings results from Pfizer Inc (NYSE:PFE), Caterpillar Inc (NYSE:CAT) and Advanced Micro Devices Inc (NASDAQ:AMD) today.

At a current reading of 46, the index remained in the “Neutral” zone on Monday, versus a prior reading of 45.2.

What is CNN Business Fear & Greed Index?

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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