The CNN Money Fear and Greed index showed a slight improvement in overall market sentiment, while the index remained in the “Extreme Fear” zone on Monday.
U.S. stocks settled mostly higher on Monday, with the Nasdaq Composite gaining more than 1% during the session.
The S&P 500 declined about 2% last week, while the Nasdaq tumbled more than 4%. The Dow, however, gained 0.7% on the week.
Federal Reserve Chair Kevin Warsh declined to preview next week’s FOMC decision, saying recent hot inflation readings have not changed his assessment of the economy, even as markets price a roughly 80% chance of an October hold.
Silence Therapeutics PLC (NASDAQ:SLN) shares jumped around 126% after the company agreed to be acquired by Merck KGaA, Darmstadt, Germany.
On the earnings front, Cleveland-Cliffs Inc. (NYSE:CLF) shares jumped 16% on Monday after the company reported better-than-expected third-quarter adjusted EPS results.
On the economic data front, the NAHB/Wells Fargo Housing Market Index declined for a second straight month to 29 in October, recording the lowest reading since June 2012, down from 32 in the previous month and missing market estimates of 32.
Most sectors on the S&P 500 closed on a negative note, with real estate, utilities and financial stocks recording the biggest losses on Monday. However, consumer discretionary and information technology stocks bucked the overall market trend, closing the session higher.
The Dow Jones closed lower by around 36 points to 51,966.03 on Monday. The S&P 500 gained 0.41% to 7,690.73, while the Nasdaq Composite jumped 1.11% at 26,430.89 during Monday’s session.
Investors are awaiting earnings results from General Motors Co (NYSE:GM), General Electric Company (NYSE:GE) and Netflix Inc (NASDAQ:NFLX) today.
At a current reading of 23, the index remained in the “Extreme Fear” zone on Monday, versus a prior reading of 22.
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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