Nasdaq Jumps Over 2% As Trump's Tariff Threat Fades: Investor Fear Eases, But Greed Index Remains In 'Fear' Zone

The CNN Money Fear and Greed index showed some easing in the overall fear level, while the index remained in the “Fear” zone on Monday.

U.S. stocks settled higher on Monday, with the Nasdaq Composite gaining more than 2% during the session after President Donald Trump softened his tone on China over the weekend, reversing much of Friday’s sharp sell-off and reigniting risk appetite across asset classes.

The S&P 500 plunged 2.4% last week, while the Dow also recorded a weekly decline of 2.7% after President Donald Trump threatened a sweeping increase in tariffs on Chinese imports.

Oracle Corp. (NYSE:ORCL) shares jumped more than 5%, while Nvidia Corp. (NASDAQ:NVDA) gained almost 3% on Monday. Broadcom Inc. (NASDAQ:AVGO) soared around 10% after OpenAI pledged a $500-billion investment to co-develop 10 gigawatts of custom AI accelerators with the chipmaker.

Most sectors on the S&P 500 closed on a positive note, with information technology, consumer discretionary and communication services stocks recording the biggest gains on Monday. However, consumer staples and health care stocks bucked the overall market trend, closing the session lower.

The Dow Jones closed higher by around 588 points to 46,067.58 on Monday. The S&P 500 jumped 1.56% to 6,654.72, while the Nasdaq Composite surged 2.21% at 22,694.61 during Monday's session.

Investors are awaiting earnings results from Goldman Sachs Group Inc. (NYSE:GS), JPMorgan Chase & Co. (NYSE:JPM) and Citigroup Inc. (NYSE:C) today.

What is CNN Business Fear & Greed Index?

At a current reading of 33.2, the index remained in the “Fear” zone on Monday, versus a prior reading of 31.7.

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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