The CNN Money Fear and Greed index showed easing in the fear level after US stocks started the new month and quarter on a strong note.
The Dow Jones recorded the best session since June 24, while it was the best day since July 27 for the S&P 500.
During September, the 30-stock Dow and S&P 500 recorded their biggest monthly drops since March 2020. The Dow dropped 8.8%, while the S&P 500 dipped 9.3% in September.
The Dow jumped 2.66% to close at 29,490.89 on Monday, while the S&P 500 rose 2.59% to 3,678.43. The Nasdaq Composite climbed 2.27% to settle at 10,815.43 in the previous session.
Investors are now awaiting earnings results from Acuity Brands, Inc. AYI and SMART Global Holdings, Inc. SGH, scheduled for release today.
At a current reading of 23.0, the index remained in the “extreme fear” zone, following a previous reading of 17.0.
What is CNN Business Fear & Greed Index?
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.
Image and article originally from www.benzinga.com. Read the original article here.