Dow Surges Over 300 Points Ahead Of Earnings: Fear & Greed Index Remains In 'Extreme Fear' Zone

The CNN Money Fear and Greed index showed almost no change in the overall fear level, while the index remained in the “Extreme Fear” zone on Monday.

U.S. stocks settled higher on Monday, with the Dow Jones index gaining more than 300 points during the session. Over the weekend, the White House announced a provisional exemption for smartphones and semiconductors from China's proposed 145% trade tariff. These items will instead face a 20% levy—linked to fentanyl-related enforcement—until sector-specific duties are finalized.

Apple Inc. AAPL shares rose 2.2%, while Dell Technologies Inc. DELL shares gained around 4%. The Technology Select Sector SPDR Fund (XLK) rose about 1% on Monday.

The Goldman Sachs Group, Inc. GS posted better-than-expected earnings for its first quarter. M&T Bank Corporation MTB posted weaker-than-expected earnings for its first quarter.

Despite significant volatility last week, all three major averages recorded gains during the period. The S&P 500 gained 5.7% to record its best week since November 2023, while the Nasdaq jumped 7.3%, notching its best week since November 2022. The Dow also jumped around 5% last week.

Most sectors on the S&P 500 closed on a positive note, with real estate, utilities and consumer staples stocks recording biggest gains on Monday. However, consumer discretionary stocks bucked the overall market trend, closing the session lower.

The Dow Jones closed higher by around 312 points to 40,524.79 on Monday. The S&P 500 rose 0.79% to 5,405.97, while the Nasdaq Composite climbed 0.64% at 16,831.48 during Monday's session.

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Investors are awaiting earnings results from Citigroup Inc. C, United Airlines Holdings, Inc. UAL and Bank of America Corporation BAC today.

At a current reading of 19.4, the index remained in the “Extreme Fear” zone on Monday, versus a prior reading of 19.4.

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.

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