The U.S. stock market continues to climb, with the Dow Jones Industrial Average hitting a new milestone by closing above 44,000 for the first time. This positive momentum comes as the CNN Money Fear and Greed Index remains firmly in the ‘Greed’ zone, indicating a bullish market sentiment. The index, which gauges investor emotions, edged down slightly to 67.9 on Monday from 62.7 the previous day.
The rally was fueled by a broad-based surge across various sectors, particularly consumer discretionary, financials, and industrials. Tesla, Inc. (TSLA) shares gained around 9% on Monday, continuing their positive trend since the U.S. presidential election. Big bank stocks, including JPMorgan Chase (JPM), Goldman Sachs (GS), Bank of America (BAC), and Citigroup (C), also closed higher.
However, not all sectors participated in the market’s upward trajectory. Information technology and real estate stocks bucked the trend, ending the day lower.
Wall Street witnessed a strong week last week, with the S&P 500 surging 4.66% and the Dow gaining 4.61%. The Nasdaq, meanwhile, jumped 5.74% during the week. Investors are now eagerly awaiting earnings results from major companies like Tyson Foods (TSN), The Home Depot (HD), and Occidental Petroleum (OXY). These earnings reports are expected to offer further insights into the health of the economy and the direction of the stock market.
The Fear & Greed Index is a valuable tool for investors as it helps gauge the overall market sentiment. Based on seven equal-weighted indicators, the index ranges from 0 to 100, with 0 representing maximum fear and 100 signaling maximum greediness. The index is constructed under the assumption that fear puts downward pressure on stock prices, while greed has the opposite effect.
