Investor Sentiment Improves Further; Fear & Greed Index Remains In 'Greed' Zone

The CNN Money Fear and Greed index showed further improvement in overall market sentiment, but the index remained in the "Greed" zone on Monday.

U.S. stocks closed lower on Monday after the S&P 500 index notched its strongest close since March 2022 on Friday.

Bitcoin prices topped the $41,000 level, while gold climbed to its strongest nominal intraday level ever on Monday.

On the economic data front, U.S. factory orders fell 3.6% month-over-month in October versus a revised 2.3% increase in September, and compared to market estimates of a 2.8% decline.

Shares of Alaska Air Group, Inc. ALK fell over 14% on Monday after the company announced it will acquire Hawaiian Airlines HA for $18 per share in cash.

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

The Dow Jones closed lower by around 41 points to 36,204.44 on Monday. The S&P 500 fell 0.54% at 4,569.78, while the Nasdaq Composite fell 0.84% at 14,185.49 during Monday’s session.

Investors are awaiting earnings results from Toll Brothers, Inc. TOL, AutoZone, Inc. AZO and The J. M. Smucker Company SJM today.

At a current reading of 68.4, the index remained in the "Greed" zone on Monday, versus a prior reading of 67.5.

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: Jim Cramer Likes This Industrial Stock 'Even Up Here,' As For ImmunityBio? 'It's Risky'