The CNN Money Fear and Greed index showed a decline in the overall market sentiment, while the index moved to the "Fear" zone on Thursday.
U.S. stocks settled lower on Thursday, with the Nasdaq Composite falling more than 500 points during the session. The S&P 500 and Nasdaq both recorded their biggest single-day declines since Sept. 3.
Shares of Meta Platforms Inc. (NASDAQ:META) fell around 4% on Thursday after the company reported third-quarter financial results. Shares of Microsoft Corp. (NASDAQ:MSFT) fell around 6% on Thursday after the company reported first-quarter financial results.
On the economic data front, U.S. initial jobless claims declined by 12,000 from the previous week to 216,000 in the week ending Oct. 26. The personal consumption expenditure price index rose 0.2% month-over-month in September following a 0.1% increase in August.
Most sectors on the S&P 500 closed on a negative note, with information technology, consumer discretionary, and real estate stocks recording the biggest losses on Thursday. However, utilities and energy stocks bucked the overall market trend, closing the session higher.
The Dow Jones closed lower by around 378 points to 41,763.46 on Thursday. The S&P 500 fell 1.86% to 5,705.45, while the Nasdaq Composite fell 2.76% at 18,095.15 during Thursday's session.
Investors are awaiting earnings results from Chevron Corporation (NYSE:CVX), Exxon Mobil Corporation (NYSE:XOM), and Cardinal Health, Inc. (NYSE:CAH) today.
What is CNN Business Fear & Greed Index?
At a current reading of 43.5, the index moved to the "Fear" zone on Thursday, versus a prior reading of 54.
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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