Nasdaq, S&P 500 Close Lower As Investors Await Jerome Powell's Jackson Hole Address: Fear & Greed Index Stays In 'Neutral' Zone

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

U.S. stocks settled lower on Thursday, ahead of a speech by Fed Chair Jerome Powell at the Jackson Hole Economic Symposium on Friday.

Williams-Sonoma, Inc. WSM shares dipped over 9% on Thursday after the company reported second-quarter results. Peloton Interactive, Inc. PTON shares jumped 35% after reporting better-than-expected second-quarter financial results.

On the economic data front, U.S. initial jobless claims rose by 4,000 from the prior week to 232,000 in the week ending August 17th, compared to market expectations of 230,000. The S&P Global manufacturing PMI declined to 48 in August versus 49.6 in the prior month, while services PMI rose to 55.2 from 55.

Most sectors on the S&P 500 closed on a negative note, with consumer discretionary, information technology and communication services stocks recording the biggest losses on Thursday. However, financials and real estate stocks bucked the overall market trend, closing the session higher.

The Dow Jones closed lower by around 178 points to 40,712.78 on Thursday. The S&P 500 fell 0.89% to 5,570.64, while the Nasdaq Composite dipped 1.67% at 17,619.35 during Thursday's session.

Investors are awaiting earnings results from 51Talk Online Education Group COE and Yunji Inc. YJ today.

What is CNN Business Fear & Greed Index?

At a current reading of 47.4, the index remained in the “Neutral” zone on Thursday, versus a prior reading of 51.7.

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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