Dow Dips Over 100 Points Ahead Of Key Inflation Data: Greed Index Remains In 'Extreme Fear' Zone

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

U.S. stocks settled mixed on Monday, with the Dow Jones index falling more than 100 points during the session. All major indices recorded losses last week, with the Dow and Nasdaq falling by 0.6% and 0.18%, respectively.

Data on the July producer price index will be released on Tuesday, while the consumer price index report will be released on Wednesday.

On the economic data front, the U.S. government budget deficit increased to $244 billion in July compared to a $220.7 billion gap recorded in the year-ago month.

Monday.com Ltd MNDY shares jumped around 15% on Monday after the company reported better-than-expected earnings for its fiscal second quarter. B. Riley Financial, Inc. RILY shares tumbled around 52% after the company reported preliminary second-quarter financial results.

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

The Dow Jones closed lower by around 140 points to 39,357.01 on Monday. The S&P 500 rose slightly to close at 5,344.39, while the Nasdaq Composite jumped 0.21% to close at 16,780.61 during Monday's session.

Investors are awaiting earnings results from The Home Depot, Inc. HD, Paysafe Limited PSFE, and XP Inc. XP today.

What is CNN Business Fear & Greed Index?

At a current reading of 23.6, the index remained in the “Extreme Fear” zone on Monday, versus a prior reading of 23.5.

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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