The CNN Money Fear and Greed index showed a decline in overall market sentiment, while the index moved to the “Extreme Fear” zone on Thursday.
U.S. stocks settled mostly lower on Thursday, with the Nasdaq Composite recording its worst session since June.
Meta Platforms Inc. (NASDAQ:META) shares dipped about 7% following the release of quarterly results. Other tech stocks, including Advanced Micro Devices Inc. (NASDAQ:AMD) and Nvidia Corp. (NASDAQ:NVDA), also closed sharply lower on Thursday.
Shares of Tesla Inc. (NASDAQ:TSLA) fell around 3% on Thursday after the company reported results for the third quarter.
On the economic data front, initial jobless claims fell to 194,000, below the 200,000 consensus and prior reading, while the Conference Board’s leading index was unchanged in September against an expected 0.2% decline.
Most sectors on the S&P 500 closed on a positive note, with consumer staples, utilities and health care stocks recording the biggest gains on Thursday. However, communication services and information technology stocks were among the worst performers.
The Dow Jones closed higher by around 12 points to 52,867.98 on Thursday. The S&P 500 dipped 1.21% to 7,663.43, while the Nasdaq Composite tumbled 2.60% at 26,008.86 during Thursday’s session.
Investors are awaiting earnings results from SLB NV (NYSE:SLB), Booz Allen Hamilton Holding Corp. (NYSE:BAH) and American Express Co. (NYSE:AXP) today.
At a current reading of 20, the index moved to the “Extreme Fear” zone on Thursday, versus a prior reading of 27.
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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