Dow Dips Over 600 Points, S&P 500 Records Worst Session Since December; Fear & Greed Index Remains In 'Extreme Fear' Zone

The CNN Money Fear and Greed index remained in the “Extreme Fear” zone on Monday.

U.S. stocks settled lower on Monday, with the Dow Jones index dipping more than 600 points during the session. The S&P 500 also recorded its worst day since December.

US President Donald Trump announced plans to impose 25% tariffs on imports from Canada and Mexico and an additional 20% tariff on goods imported from China, beginning Tuesday.

Most sectors on the S&P 500 closed on a negative note, with information technology, energy and consumer discretionary stocks recording biggest losses on Monday. However, real estate and consumer staples stocks bucked the overall market trend, closing the session higher.

The Dow Jones closed lower by around 650 points to 43,191.24 on Monday. The S&P 500 fell 1.76% to 5,849.72, while the Nasdaq Composite dipped 2.64% at 18,350.19 during Monday's session.

Investors are awaiting earnings results from Target Corporation TGT, AutoZone, Inc. AZO and Best Buy Co., Inc. BBY today.

At a current reading of 24.4, the index remained in the “Extreme Fear” zone on Monday, versus a prior reading of 20.1.

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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