Investor Sentiment Declines Further After Nasdaq Drops Over 1%

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

U.S. stocks closed mostly lower on Monday, with the Nasdaq dropping more than 1% during the session as investors sold shares of technology companies during the final trading week of the month.

Tesla, Inc. TSLA shares dropped 6% on Monday after Goldman Sachs downgraded the stock from Buy to Neutral but raised its price target from $185 to $248.

On the economic data front, the Dallas Fed manufacturing index rose to -23.2 in June, versus previous reading of -29.1.

The Dow Jones closed lower by around 13 points to 33,714.71 on Monday. The S&P 500 fell 0.45% at 4,328.82, while the Nasdaq Composite lost 1.16% to settle at 13,335.78 during the session.

Investors are awaiting earnings results from Walgreens Boots Alliance, Inc. WBA, TD SYNNEX Corporation SNX and Jefferies Financial Group Inc. JEF today.

At a current reading of 72.0, the index remained in the "Greed" zone, versus a previous reading of 74.0

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.

Read Next: Top 5 Materials Stocks That Are Preparing To Pump This Month