The CNN Money Fear and Greed Index showed an improvement in 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 200 points during the session amid gains in chip and other AI-related stocks.
Major indices closed on a mixed note last week, with the S&P 500 losing 0.5% and the Nasdaq falling 0.7%. However, the Dow rose 0.4% for the period.
President Luiz Inácio Lula da Silva defeated Sen. Flávio Bolsonaro in Sunday’s runoff, overturning bets on a business-friendly, fiscally tighter government built after Bolsonaro’s first-round lead.
On the earnings front, Verizon Communications Inc. (NYSE:VZ) shares fell over 3% on Monday after the company released earnings results for the third quarter.
On the economic data front, the Chicago Fed National Activity Index climbed to +0.07 in September from -0.08 in the previous month.
Most sectors on the S&P 500 closed on a positive note, with information technology, consumer discretionary and industrials stocks recording the biggest gains on Monday. However, communication services and consumer staples stocks bucked the overall market trend, closing the session lower.
The Dow Jones closed higher by around 146 points to 52,361.58 on Monday. The S&P 500 rose 0.70% to 7,676.77, while the Nasdaq Composite gained 0.82% at 26,169.38 during Monday’s session.
Investors are awaiting earnings results from Boeing Co. (NYSE:BA) and Coca-Cola Co. (NYSE:KO).
What is CNN Business Fear & Greed Index?
At a current reading of 27, the index moved to the “Fear” zone on Monday, versus a prior reading of 23.
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 equally weighted indicators. The index ranges from 0 to 100, where 0 represents maximum fear and 100 signals maximum greediness.
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