Investor Sentiment Drops Following Economic Reports

The CNN Money Fear and Greed index showed some decline in overall sentiment among U.S. investors on Thursday.

The Dow Jones dropped more than 300 points on Thursday as investors assessed the recent economic data.

Private businesses in the U.S. added 497,000 jobs in June, the most since Feb. 2022, and higher than market estimates of 228,000. U.S. initial jobless claims increased by 12,000 from the previous week to 248,000 in the week ending July 1, versus market estimates of 245,000.

After the closing bell, Levi Strauss & Co. LEVI reported upbeat earnings for its second quarter, but lowered its annual profit outlook.

The Dow Jones closed lower by around 366 points to 33,922.26 on Thursday. The S&P 500 fell 0.79% at 4,411.59, while the Nasdaq Composite lost 0.82% at 13,679.04 during the session.

Investors are awaiting earnings results from AZZ Inc. AZZ and ImmunoPrecise Antibodies Ltd. IPA today.

At a current reading of 79.0, the index remained in the "Extreme Greed" zone, versus a previous reading of 80.0

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.

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