Nasdaq Dips Over 1% as Tech Stocks Fall: Investor Sentiment Weakens, Fear & Greed Index Moves to ‘Extreme Fear’ Zone
Avi Kapoor 13 hours ago
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CNN Fear & Greed fell to 23, signaling Extreme Fear, as tech stocks dragged Nasdaq down 1.07%; Dow rose 214 points amid U.S.-Iran diplomacy hopes.
The CNN Money Fear and Greed Index showed a decline in overall market sentiment, while the index moved to the “Extreme Fear” zone on Monday.
U.S. stocks settled mixed on Monday, with the Nasdaq Composite falling more than 1% during the session amid a decline in tech stocks. Shares of Nvidia Corp. (NASDAQ:NVDA) and Meta Platforms Inc. (NASDAQ:META) each fell over 1% on Monday.
However, the Dow Jones gained more than 200 points as crude oil recorded its steepest one-day drop since July 27, on renewed hopes for U.S.-Iran diplomacy.
Major indices on Wall Street closed on a mixed note last month, with the Nasdaq dipping 5.3% and the S&P 500 falling 0.9%. However, the Dow added 1.7% in October.
On the economic data front, the ISM manufacturing PMI rose to 55.5 in October from 54.5, above the 54.6 forecast, while the prices-paid gauge cooled to 75.2 from 77.9. S&P Global’s final manufacturing PMI came in at 54.9, below the 56 forecast.
Most sectors on the S&P 500 closed on a positive note, with consumer discretionary, materials and financial stocks recording the biggest gains on Monday. However, energy and information technology stocks were among the worst performers.
The Dow Jones closed higher by around 214 points to 51,983.98 on Monday. The S&P 500 fell 0.51% to 7,541.40, while the Nasdaq Composite tumbled 1.07% at 25,164.36 during Monday’s session.
Investors are awaiting earnings results from Pfizer Inc. (NYSE:PFE), Keurig Dr Pepper Inc. (NASDAQ:KDP) and Advanced Micro Devices Inc. (NASDAQ:AMD) today.
What is CNN Business Fear & Greed Index?
At a current reading of 23, the index moved to the “Extreme Fear” zone on Monday, versus a prior reading of 26.
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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