Fear & Greed Index Moves To 'Neutral' Zone; Dow Records Worst Day of 2024
The CNN Money Fear and Greed index showed further decline in the overall market sentiment, with the index moving to the “Neutral” zone on Thursday.
U.S. stocks settled lower on Thursday, with the Dow Jones index recording its worst day of the year.
Traders are seeing a 51% chance the US Federal Reserve will slash interest rates in its September meeting, compared to 68% in the previous week.
NVIDIA Corporation (NASDAQ:NVDA) reported better-than-expected financial results for its first quarter and issued strong guidance for the second quarter. The company announced a 10-for-1 stock split and raised its quarterly dividend by 150%.
BJ’s Wholesale Club Holdings, Inc. (NYSE:BJ) reported better-than-expected results for its first quarter on Thursday. e.l.f. Beauty, Inc. (NYSE:ELF) shares jumped around 19% on Thursday after the company reported better-than-expected fourth-quarter earnings.
On the economic data front, U.S. initial jobless claims declined by 8,000 to 215,000 in the week ending May 18, compared to market estimates of 220,000. The S&P Global manufacturing PMI rose to 50.9 in May from 50 in April, while services PMI climbed to 54.8 in May from 51.3.
Most sectors on the S&P 500 closed on a negative note, with utilities, real estate and consumer discretionary stocks recording the biggest losses on Thursday. However, information technology stocks bucked the overall market trend, closing the session higher.
The Dow Jones closed lower by around 606 points to 39,065.26 on Thursday. The S&P 500 fell 0.74% at 5,267.84, while the Nasdaq Composite slipped 0.39% at 16,736.03 during Thursday's session.
Investors are awaiting earnings results from Booz Allen Hamilton Holding Corporation (NYSE:BAH) and The Buckle, Inc. (NYSE:BKE) today.
At a current reading of 53.7, the index moved to the “Neutral” zone on Thursday, versus a prior reading of 58.6.
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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