Trump Tariffs Sink Dow Over 400 Points: Investor Sentiment Declines, But Fear & Greed Index Remains In 'Extreme Greed' Zone
The CNN Money Fear and Greed index showed a decline in the overall market sentiment, while the index remained in the “Extreme Greed” zone on Monday.
U.S. stocks settled lower on Monday, with the Dow Jones index falling more than 400 points during the session after President Donald Trump officially announced sweeping 25% tariffs on all imports from Japan and South Korea, starting Aug. 1. The new tariffs apply to all goods from the two Asian economies and are in addition to any existing sector-specific duties.
Cogent Biosciences Inc. (NASDAQ:COGT) announced topline results from Part 2 of the SUMMIT trial of bezuclastinib for non-advanced systemic mastocytosis, showing clinically meaningful and statistically significant improvements across the primary and all key secondary endpoints. Core Scientific Inc. (NASDAQ:CORZ) shares fell around 18% on Monday after CoreWeave announced plans to acquire the company in an all-stock deal.
Most sectors on the S&P 500 closed on a negative note, with consumer discretionary, materials and energy stocks recording the biggest losses on Monday. However, consumer staples and utilities stocks bucked the overall market trend, closing the session higher.
The Dow Jones closed lower by 422 points to 44,406.36 on Monday. The S&P 500 fell 0.79% to 6,229.98, while the Nasdaq Composite dipped 0.92% to 20,412.52 during Monday's session.
Investors are awaiting earnings results from Penguin Solutions Inc. (NASDAQ:PENG), Saratoga Investment Corp. (NYSE:SAR) and Kura Sushi USA Inc. (NASDAQ:KRUS) today.
What is CNN Business Fear & Greed Index?
At a current reading of 75.1, the index remained in the “Extreme Greed” zone on Monday, versus a prior reading of 78.5.
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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