Dow Tumbles More Than 300 Points: Investor Sentiment Decreases, Fear Index Remains In 'Greed' Zone
U.S. stocks fell on Monday, with the Dow Jones dropping over 300 points, reflecting decreased investor sentiment despite remaining in the 'Greed' zone according to the CNN Money Fear and Greed index. The index's reading was 58.9, down from 61.7. Economic data showed a 0.6% decline in new single-family home sales and a slight drop in the Chicago Fed National Activity Index. While most sectors on the S&P 500 closed lower, Nvidia shares rose 1% ahead of its earnings release. Investors are also awaiting results from American Woodmark, PVH Corp, and Okta.
The CNN Money Fear and Greed index showed a decline in the overall market sentiment, while the index remained in the “Greed” zone on Monday.
U.S. stocks settled lower on Monday, with the Dow Jones index falling more than 300 points during the session. Investors paused to reassess after a sharp move higher, spurred by dovish comments from Federal Reserve Chair Jerome Powell that rekindled hopes for a September rate cut.
Nvidia Corp. NVDA shares gained 1% on Monday, as investors remained upbeat ahead of the company’s highly anticipated earnings release this week. PDD Holdings Inc. PDD reported upbeat fiscal second-quarter 2025 results.
On the economic data front, sales of new single-family homes in the U.S. fell by 0.6% to an annualized rate of 652,000 units in July following a revised 4.1% gain in the previous period. The Chicago Fed National Activity Index declined to -0.19 in July versus a revised reading of -0.18 in June.
Most sectors on the S&P 500 closed on a negative note, with consumer staples, health care and utilities stocks recording the biggest losses on Monday. However, communication services and energy stocks bucked the overall market trend, closing the session higher.
The Dow Jones closed lower by around 349 points to 45,282.47 on Monday. The S&P 500 fell 0.43% to 6,439.32, while the Nasdaq Composite declined 0.22% to 21,449.29 during Monday's session.
Investors are awaiting earnings results American Woodmark Corp. AMWD, PVH Corp. PVH and Okta Inc. OKTA today.
What is CNN Business Fear & Greed Index?
At a current reading of 58.9, the index remained in the “Greed” zone on Monday, versus a prior reading of 61.7.
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.
- Top 2 Materials Stocks That May Fall Off A Cliff In Q3
Photo courtesy: Shutterstock
