US Stocks Settle Mixed Following US-EU Trade Deal: Investor Sentiment Edges Lower, But Fear Index Remains In 'Greed' Zone

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

U.S. stocks settled mixed on Monday, with the S&P 500 recording gains as markets reacted to the U.S.-EU trade deal struck over the weekend. Under the new trade agreement, the U.S. will impose a 15% tariff on EU imports, including pharmaceuticals and automobiles. Certain sectors, such as steel, aluminum, and copper, will face steeper tariffs of up to 50%.

All three major indices closed the week higher, with the 30-stock Dow gaining around 1.3% and the tech-heavy Nasdaq adding 1%. The broad market S&P 500 climbed around 1.5% last week.

Tesla Inc. TSLA jumped 3% after the U.S. announced lower-than-expected tariffs on European goods, including autos, and following CEO Elon Musk’s revelation of a $16.5 billion deal with Samsung Electronics to produce next-generation chips.

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

The Dow Jones closed lower by 64 points to 44,837.56 on Monday. The S&P 500 gained 0.02% to 6,389.77, while the Nasdaq Composite gained 0.33% to 21,178.58 during Monday's session.

Investors are awaiting earnings results from Boeing Co. BA, Procter & Gamble Co. PG and Starbucks Corp. SBUX today.

What is CNN Business Fear & Greed Index?

At a current reading of 73.3, the index remained in the “Greed” zone on Monday, versus a prior reading of 73.9.

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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