Dow Dips Over 200 Points Following Economic Reports, Tesla Tumbles On Potential Removal Of EV Tax Credit: Fear Index Remains In 'Greed' Zone

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

U.S. stocks settled lower on Thursday, with the Dow Jones falling more than 200 points during the session as investors digested recent economic reports.

U.S. initial jobless claims declined by 4,000 from the previous week to 217,000 in the week ending Nov. 9, compared to market estimates of 223,000. U.S. producer prices rose 0.2% month-over-month in October compared to a revised 0.1% gain in September, in line with market expectations.

Shares of Tesla, Inc. TSLA fell around 5.8% on Thursday after recording sharp gains in the recent period. The small-cap benchmark Russell 2000 tumbled over 1% during the session.

Cisco Systems Inc. CSCO shares fell over 2% on Thursday despite reporting better-than-expected results for its first quarter.

Most sectors on the S&P 500 closed on a negative note, with consumer discretionary, industrials, and healthcare stocks recording the biggest losses on Thursday. However, information technology and energy stocks bucked the overall market trend, closing the session higher.

The Dow Jones closed lower by around 207 points to 43,750.86 on Thursday. The S&P 500 fell 0.60% to 5,949.17, while the Nasdaq Composite fell 0.64% to close at 19,107.65 during Thursday's session.

Investors are awaiting earnings results from Alibaba Group Holding Limited BABA, Spectrum Brands Holdings, Inc. SPB, and RLX Technology Inc. RLX today.

What is CNN Business Fear & Greed Index?

At a current reading of 60.3, the index remained in the “Greed” zone on Thursday, versus a prior reading of 65.8.

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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