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

U.S. stocks settled lower on Monday, with the Dow Jones index falling more than 300 points during the session. Investors paused to reassess after a sharp move higher, spurred by dovish comments from Federal Reserve Chair Jerome Powell that rekindled hopes for a September rate cut.

Nvidia Corp. ( NVDA ) shares gained 1% on Monday, as investors remained upbeat ahead of the company’s highly anticipated earnings release this week. PDD Holdings Inc. ( PDD ) reported upbeat fiscal second-quarter 2025 results.

On the economic data front, sales of new single-family homes in the U.S. fell by 0.6% to an annualized rate of 652,000 units in July following a revised 4.1% gain in the previous period. The Chicago Fed National Activity Index declined to -0.19 in July versus a revised reading of -0.18 in June.

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

The Dow Jones closed lower by around 349 points to 45,282.47 on Monday. The S&P 500 fell 0.43% to 6,439.32, while the Nasdaq Composite declined 0.22% to 21,449.29 during Monday's session.

Investors are awaiting earnings results American Woodmark Corp. ( AMWD ) , PVH Corp. ( PVH ) and Okta Inc. ( OKTA ) today.

What is CNN Business Fear & Greed Index?

At a current reading of 58.9, the index remained in the “Greed” zone on Monday, versus a prior reading of 61.7.

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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