The CNN Money Fear and Greed index showed a decline in the overall market sentiment, while the index remained in the “Extreme Fear” zone on Monday.

U.S. stocks settled lower on Monday, with the Dow Jones index dipping around 900 points during the session.

Stocks also recorded losses last week, with the S&P 500 falling 3.1% during the week. The Dow declined 2.4%, while the Nasdaq Composite tumbled 3.5% during the week.

Tesla, Inc. ( TSLA ) shares dipped over 15%, while Meta Platforms, Inc. ( META ) lost more than 4% on Monday.

President Donald Trump seemed to acknowledge the possibility of a U.S. recession in an interview with Fox News on Sunday when he referred to the current economic situation as a “period of transition” further fueling economic concerns.

On the economic data front, U.S. consumer inflation expectations for the year ahead increased to 3.1% in February from 3% in the prior three months.

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

The Dow Jones closed lower by around 890 points to 41,911.71 on Monday. The S&P 500 fell 2.70% to 5,614.56, while the Nasdaq Composite dipped 4% at 17,468.32 during Monday's session.

Investors are awaiting earnings results from DICK’S Sporting Goods, Inc. , Ciena Corporation ( CIEN ) and Kohl’s Corporation today.

At a current reading of 14.5, the index remained in the “Extreme Fear” zone on Monday, versus a prior reading of 18.2.

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.

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