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 gaining more than 300 points during the session ahead of a big week of major earnings reports and interest rate decision from the Federal Reserve. Meanwhile, stocks recorded losses last week, with the 30-stock Dow losing 0.5% and the S&P 500 falling about 0.4%.
Revolution Medicines Inc (NASDAQ:RVMD) shares dropped 17% on Monday following reports suggesting that Merck is no longer in discussions to acquire the company. Steel Dynamics Inc (NASDAQ:STLD) reported downbeat earnings for the fourth quarter on Monday.
On the economic data front, the Chicago Fed National Activity Index climbed to -0.04 in November from a reading of -0.42 in October. U.S. durable-goods orders rose 5.3% month-over-month in November following a revised 2.1% plunge in October and topping market estimates of a 3.7% increase.
Most sectors on the S&P 500 closed on a positive note, with communication services, information technology and utilities stocks recording the biggest gains on Monday. However, consumer discretionary and consumer staples stocks bucked the overall market trend, closing the session lower.
The Dow Jones closed higher by around 314 points to 49,412.40 on Monday. The S&P 500 rose 0.50% to 6,950.23, while the Nasdaq Composite gained 0.43% at 23,601.36 during Monday’s session.
Investors are awaiting earnings results General Motors Co (NYSE:GM), Boeing Co (NYSE:BA) and UnitedHealth Group Inc (NYSE:UNH) today.
At a current reading of 55.3, the index remained in the “Neutral” zone on Monday, versus a prior reading of 53.7.
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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