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

U.S. stocks settled lower on Thursday, with the S&P 500 falling around 0.2% during the session.

Investors digested Federal Reserve Chair Jerome Powell's remarks on inflation and tariffs following the Federal Open Market Committee meeting on Wednesday.

Powell downplayed concerns that tariffs imposed by President Donald Trump could reignite inflation, calling their impact "transitory." Yet, the Fed's latest projections signaled slower economic growth, rising unemployment, and hotter inflation.

Darden Restaurants Inc. (NYSE:DRI) shares gained around 6% on Thursday in reaction to stronger-than-expected earnings. Accenture plc (NYSE:ACN) shares dipped over 7% after the company issued FY25 diluted EPS guidance below estimates.

On the economic data front, the U.S. current account deficit shrank by 2.0% to $303.9 billion in the fourth quarter, versus a revised deficit of $310.3 billion in the third quarter. U.S. initial jobless claims increased by 2,000 to 223,000 during the second week of March, compared to market estimates of 224,000. The Philadelphia Fed Manufacturing Index fell to 12.5 in March from 18.1 in the previous month, versus market estimates of 8.5.

Most sectors on the S&P 500 closed on a negative note, with materials, consumer staples, and information technology stocks recording losses on Thursday. However, energy and utilities stocks bucked the overall market trend, closing the session higher.

The Dow Jones closed lower by around 11 points to 41,953.32 on Thursday. The S&P 500 fell 0.22% to 5,662.89, while the Nasdaq Composite declined 0.33% to 17,691.63 during Thursday's session.

Investors are awaiting earnings results from NIO Inc. (NYSE:NIO), Carnival Corp. (NYSE:CCL, )) and MINISO Group Holding Ltd. (NASDAQ:MNSO) today.

What is CNN Business Fear & Greed Index?

At a current reading of 22.1, the index remained in the "Extreme Fear" zone on Thursday, versus a prior reading of 22.7.

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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