The overall market sentiment saw a slight uptick, as indicated by the CNN Money Fear and Greed index, but it remained firmly in the ‘Extreme Fear’ zone on Monday. This comes amidst a mixed performance for U.S. stocks, with the Dow Jones Industrial Average closing down over 100 points.
Despite the Dow’s decline, the S&P 500 and the Nasdaq Composite managed to close higher. This positive momentum was partly driven by strong earnings reports from some companies, notably Monday.com Ltd (MNDY). Monday.com shares surged around 15% after reporting better-than-expected results for its second quarter.
However, not all companies fared as well. B. Riley Financial, Inc. (RILY) shares took a significant hit, plummeting around 52% after the company released preliminary financial results for the second quarter that fell short of expectations.
Across the broader market, most sectors on the S&P 500 closed in the red, with communication services, real estate, and industrials experiencing the most significant losses. However, the energy and utilities sectors bucked the trend, ending the day with gains.
The Dow Jones closed at 39,357.01, down around 140 points. The S&P 500 rose slightly to close at 5,344.39, while the Nasdaq Composite jumped 0.21% to close at 16,780.61.
Investors are now looking ahead to earnings reports from companies like The Home Depot, Inc. (HD), Paysafe Limited (PSFE), and XP Inc. (XP) this week.
What is the CNN Business Fear & Greed Index?
The Fear & Greed Index measures the current market sentiment, with the premise that higher fear weighs down stock prices, while higher greed pushes prices up. The index is calculated based on seven equal-weighted indicators and ranges from 0 to 100, with 0 representing maximum fear and 100 signaling maximum greediness. On Monday, the index remained in the ‘Extreme Fear’ zone at a reading of 23.6, up slightly from 23.5 the previous day.
Looking ahead, investors will be closely watching economic data releases, including the July producer price index (due Tuesday) and the consumer price index report (due Wednesday). The U.S. government budget deficit in July reached $244 billion, an increase from $220.7 billion in July of the previous year.
