Dow Surges Over 400 Points But Records Losses For March: Greed Index Remains In 'Extreme Fear' Zone

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

U.S. stocks settled mixed on Monday, with the Dow Jones index gaining more than 400 points during the session as investors assessed President Donald Trump’s tariff plans. However, the Nasdaq settled lower on Monday as shares of Nvidia Corp. NVDA fell 1.2% and Tesla Inc. TSLA lost 1.7%.

The S&P 500 declined 5.8% in March, recording its biggest monthly decline since December 2022. The Nasdaq dipped 8.2%, while the Dow tumbled 4.2% last month.

For the quarter, the S&P 500 dropped, while the Nasdaq dipped 10.4%. The Dow lost 1.3% during the first three months of the year.

On the economic data front, the Chicago PMI climbed to 47.6 in March from 45.5 in the previous month and topping market estimates of 45.2. The Dallas Fed's general business activity index for Texas manufacturing fell 8 points to a reading of -16.3 in March, declining to its weakest level since July 2024.

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

The Dow Jones closed higher by around 418 points to 42,001.76 on Monday. The S&P 500 rose 0.55% to 5,611.85, while the Nasdaq Composite fell 0.14% to 17,299.29 during Monday's session.

Investors are awaiting earnings results from Ultralife Corp. ULBI, nCino Inc. NCNO, and Sportsman’s Warehouse Holdings Inc. SPWH today.

At a current reading of 21.3, the index remained in the “Extreme Fear” zone on Monday, versus a prior reading of 21.7.

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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