CNN Fear & Greed Index Moves To 'Neutral' Zone After Dow Tumbles Over 700 Points

The CNN Money Fear and Greed index moved to the "Neutral" zone after US stocks recorded sharp losses on Thursday.

The Dow notched its worst session since September after data released Thursday showed retail sales dropping higher-than-expected in November. Retail sales declined 0.6% for November, higher than analysts’ expectations for a 0.3% drop.

The Fed raised rates by 50 bps and increased its federal funds rate projections while lowering its GDP forecast.

The Dow closed lower by around 764 points to 33,202.22 on Thursday. The S&P 500 fell 2.49% to 3,895.75, while the Nasdaq Composite fell 3.23% to settle at 10,810.53 in the previous session.

Accenture plc ACN, Darden Restaurants, Inc. DRI and Winnebago Industries, Inc. WGO are set to report quarterly earnings today.

At a current reading of 45.0, the index moved to the "Neutral" zone, compared to a previous reading of 60.0.

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.