The CNN Money Fear and Greed index showed some easing in the overall fear level, while the index remained in the “Extreme Fear” zone on Monday.
U.S. stocks settled higher on Monday, with the Nasdaq Composite surging around 600 points during the session after dovish signals from New York Fed President John Williams on Friday and Governor Christopher Waller on Monday, driving a swift repricing of rate expectations.
Traders now assign an 80.9% chance to a 25-basis-point cut at the Dec. 10 Federal Reserve meeting, up from 71% on Friday and just 25% one week ago, according to CME Group’s FedWatch tool.
Within the Magnificent Seven, Alphabet Inc. (NADAQ: GOOG) (NASDAQ:GOOGL) stood out with a 6.3% gain, pushing its market capitalization above Microsoft Corp. (NYSE:MSFT), now making it the world’s third-largest publicly traded company.
Tesla Inc. (NASDAQ:TSLA) also soared almost 7% after CEO Elon Musk said Sunday the company would design and deploy “several million AI chips” across its vehicle fleet and data centers.
On the economic data front, the Dallas Fed’s general business activity index for Texas manufacturing declined to -10.4 in November compared to a reading of -5 in the previous month.
Most sectors on the S&P 500 closed on a positive note, with communication services, information technology and consumer discretionary stocks recording the biggest gains on Monday. However, consumer staples and energy stocks bucked the overall market trend, closing the session lower.
The Dow Jones closed higher by around 203 points to 46,448.27 on Monday. The S&P 500 gained 1.55% to 6,705.12, while the Nasdaq Composite gained 2.69% to 22,872.01 during Friday's session.
Investors are awaiting earnings results from HP Inc. (NYSE:HPQ), J M Smucker Co. (NYSE:SJM) and Alibaba Group Holding Ltd. (NYSE:BABA) today.
What is CNN Business Fear & Greed Index?
At a current reading of 13.9, the index remained in the “Extreme Fear” zone on Monday, versus a prior reading of 12.1.
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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