Investor Optimism Improves; S&P 500 Settles At Record High
The CNN Money Fear and Greed index showed some improvement in the overall market sentiment, but the index remained in the “Neutral” zone on Monday.
U.S. stocks settled higher on Monday, with the S&P 500 closing at fresh record level. All the three major indices recorded gains last week, with the Dow Jones index gaining 0.29% and the S&P 500 rising around 1.32% during the week.
Investors are awaiting the Federal Reserve's interest-rate decision and consumer price index, due on Wednesday.
Diamond Offshore Drilling, Inc. (NYSE:DO) shares jumped around 11% on Monday after the company disclosed that it signed a definitive agreement to be acquired by Noble Corporation plc (NYSE:NE) in a stock-plus-cash transaction. Perion Network Ltd. (NASDAQ:PERI) shares tumbled around 30% after the company cut its revenue outlook.
Most sectors on the S&P 500 closed on a positive note, with utilities, energy and communication services stocks recording the biggest gains on Monday. However, financial and consumer staples stocks bucked the overall market trend, closing the session lower.
The Dow Jones closed higher by around 69 points to 38,868.04 on Monday. The S&P 500 rose 0.26% at 5,360.79, while the Nasdaq Composite climbed 0.35% at 17,192.53 during Monday's session.
Investors are awaiting earnings results from Academy Sports and Outdoors, Inc. (NASDAQ:ASO), Oracle Corporation (NYSE:ORCL) and Casey’s General Stores, Inc. (NASDAQ:CASY) today.
At a current reading of 47.5, the index remained in the “Neutral” zone on Monday, versus a prior reading of 45.3.
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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