The CNN Money Fear and Greed index showed a decline in the overall market sentiment, while the index remained in the “Fear” zone on Thursday.
U.S. stocks settled lower on Thursday, with the Nasdaq Composite falling more than 2% during the session amid rising tensions in the Middle East.
President Donald Trump warned that “major military punishment will be inflicted upon Iran” if its Houthi proxies again fire on tankers, after two Saudi Arabian vessels were hit overnight.
On the earnings front, Tesla Inc. (NASDAQ:TSLA) shares dipped more than 14% on Thursday after the company reported mixed second-quarter financial results. T-Mobile US Inc. (NASDAQ:TMUS) stock fell around 11% after the wireless carrier reported second-quarter results that beat earnings expectations but missed on revenue. Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL) shares declined around 7% on Thursday after the company reported second-quarter financial results.
On the economic data front, U.S. initial jobless claims fell by 22,000 to 187,000 in the week ending July 18, compared to market estimates of 212,000. The Chicago Fed National Activity Index climbed to -0.02 in June from -0.19 in the previous month.
Most sectors on the S&P 500 closed on a negative note, with consumer staples, communication services and consumer discretionary stocks recording the biggest losses on Thursday. However, industrials and health care stocks bucked the overall market trend, closing the session higher.
The Dow Jones closed lower by around 507 points to 51,711.65 on Thursday. The S&P 500 fell 1.21% to 7,408.30, while the Nasdaq Composite declined 2.15% to 25,137.69 during Thursday’s session.
Investors are awaiting earnings results from American Express Co .(NYSE:AXP), Verizon Communications Inc. (NYSE:VZ) and HCA Healthcare Inc. (NYSE:HCA) today.
What Is CNN Business Fear & Greed Index?
At a current reading of 39.7, the index remained in the “Fear” zone on Thursday, versus a prior reading of 43.3.
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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