The CNN Money Fear and Greed index showed some improvement in the overall market sentiment, while the index remained in the "Extreme Fear" zone on Monday.

U.S. stocks settled higher on Monday, with the Dow Jones index surging more than 350 points during the session. All three of the major indices recorded back-to-back gains.

Despite gains recorded on Monday, US stocks recorded losses last week. The Dow dipped around 3.1% to record its worst week since March 2023. The S&P 500 dipped more than 2%, recording its fourth straight losing week.

Guess?, Inc. (NYSE:GES) shares jumped 30% on Monday after the company announced it received a non-binding proposal from WHP Global to acquire the company for $13 per share in cash. Baidu Inc. (NASDAQ:BIDU) shares gained 9% after the company announced the launch of ERNIE 4.5 and deep-thinking model ERNIE X1.

On the economic data front, U.S. retail sales rose 0.2% month-over-month in February following a revised 1.2% decline in January but down from market expectations of a 0.6% rise. The NY Empire State Manufacturing Index declined 26 points to -20.0 in March, recording the lowest reading since May 2023. The NAHB/Wells Fargo Housing Market Index fell to 39 in March versus a reading of 42 in February.

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

The Dow Jones closed higher by around 353 points to 41,841.63 on Monday. The S&P 500 rose 0.64% to 5,675.12, while the Nasdaq Composite climbed 0.31% at 17,808.66 during Monday's session.

Investors are awaiting earnings results from Science Applications International Corporation (NASDAQ:SAIC), Getty Images Holdings, Inc. (NYSE:GETY), and Consolidated Water Co. Ltd. (NASDAQ:CWCO) today.

What is CNN Business Fear & Greed Index?

At a current reading of 22.1, the index remained in the "Extreme Fear" zone on Monday, versus a prior reading of 20.9.

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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