The stock market showed signs of recovery on Monday, with the Dow Jones Industrial Average surging over 1% after a rough week. While the overall market sentiment improved slightly, the CNN Money Fear and Greed index remained in the “Fear” zone, indicating cautious optimism among investors.
The Dow’s gains were fueled by positive earnings reports and economic data. NVIDIA Corporation, a leading player in artificial intelligence, saw its shares jump by 3.5% after experiencing a 14% decline the previous week. Relay Therapeutics, Inc., a pharmaceutical company, witnessed a significant 52% increase in its stock price following the release of promising interim data for its breast cancer treatment.
On the economic front, US wholesale inventories rose 0.2% month-over-month in July, providing further evidence of economic stability. All sectors within the S&P 500 closed in the green, with industrials, information technology, and consumer discretionary stocks leading the charge.
The Dow Jones closed the day at 40,829.59, up by approximately 484 points. The S&P 500 gained 1.16% to 5,471.05, and the Nasdaq Composite rose 1.16% to 16,884.60.
Investors are eagerly awaiting earnings results from several companies, including Academy Sports and Outdoors, Inc., GameStop Corp., and Dave & Buster’s Entertainment, Inc.
The CNN Money Fear and Greed Index, which measures market sentiment, currently stands at 42.1. This index is based on seven equal-weighted indicators and ranges from 0 (maximum fear) to 100 (maximum greed). A reading of 42.1 suggests that while fear still dominates, there are signs of optimism emerging in the market.
