Dow Dips Over 400 Points: Fear & Greed Index Remains In 'Extreme Fear' Zone

The CNN Money Fear and Greed index showed some easing in the overall fear level, while the index remained in the “Extreme Fear” zone on Monday.

U.S. stocks settled lower on Monday, with the Dow Jones index falling more than 400 points during the session after a strong late-November rally. The Dow jumped more than 3% last week, while the S&P 500 surged almost 4%. The Nasdaq Composite climbed over 4% during the week.

However, the Nasdaq dipped almost 2% last month, while the S&P 500 and Dow gained slightly during November, after recording gains last week.

Strategy Inc. (NASDAQ:MSTR), the world’s largest corporate holder of Bitcoin, slashed its 2025 earnings guidance and announced a share sale to build a $1.44 billion U.S. dollar reserve.

On the economic data front, the S&P Global manufacturing PMI was revised higher to 52.2 in November from a preliminary reading of 51.9, but down from October’s final reading of 52.5. The ISM manufacturing PMI declined to 48.2 in November, recording the lowest reading in four months, down from 48.7 in the previous month and also missing market estimates of 48.6.

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

The Dow Jones closed lower by around 427 points to 47,289.33 on Monday. The S&P 500 declined 0.53% to 6,812.63, while the Nasdaq Composite fell 0.38% at 23,275.92 during Monday’s session.

Investors are awaiting earnings results from United Natural Foods Inc. (NYSE:UNFI), Signet Jewelers Ltd. (NYSE:SIG) and CrowdStrike Holdings Inc. (NASDAQ:CRWD) today.

What Is CNN Business Fear & Greed Index?

At a current reading of 23.0, the index remained in the “Extreme Fear” zone on Monday, versus a prior reading of 18.6.

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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