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

U.S. stocks closed lower on Thursday, with the Dow Jones index falling more than 500 points during the session.

On the economic data front, U.S. initial jobless claims increased by 10,000 to 243,000 in the week ending July 13, compared to market estimates of 230,000. The Philadelphia Fed Manufacturing Index rose to 13.9 in July, recording the strongest level in three months, versus 1.3 in June.

Abbott Laboratories (NYSE:ABT) reported better-than-expected earnings for its second quarter on Thursday. D.R. Horton, Inc. (NYSE:DHI) reported stronger-than-expected second-quarter earnings.

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

The Dow Jones closed lower by around 533 points to 40,665.02 on Thursday. The S&P 500 fell 0.78% at 5,544.59, while the Nasdaq Composite dipped 0.70% at 17,871.22 during Thursday's session.

Investors are awaiting earnings results from American Express Company (NYSE:AXP), Schlumberger Limited (NYSE:SLB) and Halliburton Company (NYSE:HAL) today.

What is CNN Business Fear & Greed Index?

At a current reading of 50.6, the index moved to the "Neutral" zone on Thursday, versus a prior reading of 59.

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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