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Market Greed Persists Amidst Rising Inflation Concerns; S&P 500 Retreats for Second Consecutive Day

Greed Persists

Despite concerns over rising inflation, the CNN Money Fear and Greed index continued to indicate market sentiment in the “Greed” zone on Monday, reflecting a strong appetite for risk among investors.

Market Performance

The S&P 500 closed lower for the second consecutive session on Monday, following mixed performance across U.S. stocks. Last week, all three major indices reported losses, with the S&P 500 declining 0.26% and the Dow losing 0.93%.

Inflation Data Anticipation

Investors are bracing for the release of the consumer price index (CPI) data for February, expected to show a 3.1% increase on an annualized basis. The anticipation of these figures is contributing to the current market jitters.

Industry Shifts

EQT Corporation revealed its definitive merger agreement with Equitrans Midstream Corporation, signaling ongoing industry consolidation. Meanwhile, Genie Energy Ltd. saw a more than 9% decline in its shares following the release of its fourth-quarter results.

Market Sector Performance

While most sectors within the S&P 500 closed in the red on Monday, industrials, consumer discretionary, and real estate stocks experienced notable losses. However, materials and energy stocks managed to buck the downward trend, ending the session on a positive note.

Market Indices

The Dow Jones index closed higher by approximately 47 points at 38,769.66, while the S&P 500 fell 0.11% to 5,117.94. The Nasdaq Composite also dipped by 0.41% to 16,019.27 during Monday’s trading session.

Upcoming Earnings Reports

Eyes are on the earnings releases of International Game Technology PLC, IHS Holding Limited, and Kohl’s Corporation today, with investors keen to gauge corporate performance in the current economic landscape.

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Market Greed Index

The Fear & Greed Index, currently sitting at 66.6, continued to reflect a “Greed” sentiment on Monday, maintaining its position from the previous reading. This index serves as a barometer for market sentiment, balancing fear and greed to gauge investor behavior.

Understanding the Index

The Fear & Greed Index acts as a litmus test for market sentiment, showcasing how fear and greed impact stock prices. With seven indicators equally weighted, the index ranges from 0 to 100, where 0 represents peak fear and 100 signifies extreme greed among investors.

 

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