US Stocks Close Lower As Apple, Amazon Report Earnings: Greed Index Moves To 'Fear' Zone

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

U.S. stocks settled lower on Thursday, with the Dow Jones index tumbling around 500 points during the session.

The Nasdaq Composite ended July on a negative note, falling around 0.8%. The S&P 500 gained 1.1% last month, while the Dow added 4.4% to record its best month since December.

On the economic data front, the ISM manufacturing PMI declined to 46.6 in July versus 48.5 in the prior month, below market estimates of 48.8. Construction spending declined by 0.3% month-over-month to an annual rate of $2,148 billion in June. U.S. initial jobless claims by 14,000 to 249,000 in the week ending July 27th, beating market estimates of 236,000.

Moderna Inc. MRNA stock dipped 21% on Thursday as the company lowered its 2024 sales guidance due to weaker demand for its COVID-19 vaccines. Meta Platforms, Inc. META shares gained 4.8% after the company reported better-than-expected second-quarter financial results and issued third-quarter guidance above estimates.

Major sectors on the S&P 500 closed on a mixed note, with utilities, real estate, and consumer staples stocks recording the biggest gains on Thursday. However, information technology and energy stocks were among the worst performers during the session.

The Dow Jones closed lower by around 495 points to 40,347.97 on Thursday. The S&P 500 fell 1.37% at 5,446.68, while the Nasdaq Composite dipped 2.30% at 17,194.14 during Thursday's session.

Investors are awaiting earnings results from Exxon Mobil Corporation XOM, Chevron Corporation CVX, and Asbury Automotive Group, Inc. ABG today.

What is CNN Business Fear & Greed Index?

At a current reading of 39.6, the index moved to the “Fear” zone on Wednesday, versus a prior reading of 54.1.

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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