S&P 500 Settles Higher Amid US-China Trade Talks: Investor Sentiment Improves, Fear Index Remains In 'Greed' Zone

The CNN Money Fear and Greed index showed some improvement in the overall market sentiment, while the index remained in the “Greed” zone on Monday.

U.S. stocks settled mixed on Monday, with the Nasdaq Composite gaining more than 50 points during the session as trade talks between the U.S. and Chinese officials stoked investor optimism.

Shares of Qualcomm Inc. QCOM gained more than 4% on Monday after the company announced it reached an agreement to acquire Alphawave for $2.4 billion. Children's Place Inc. PLCE shares dipped 32% as the company posted weaker-than-expected results for its first quarter.

On the economic data front, U.S. wholesale inventories rose 0.2% month-over-month to $908.7 billion for April. U.S. consumer inflation expectations for the year ahead eased to 3.2% in May compared to 3.6% in the previous month.

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

The Dow Jones closed lower by around 1 point to 42,761.76 on Monday. The S&P 500 rose 0.09% to 6,005.88, while the Nasdaq Composite climbed 0.31% at 19,591.24 during Monday's session.

Investors are awaiting earnings results from Core & Main Inc. CNM, The J. M. Smucker Co. SJM and United Natural Foods Inc. UNFI today.

What is CNN Business Fear & Greed Index?

At a current reading of 62.1, the index remained in the “Greed” zone on Monday, versus a prior reading of 60.9.

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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