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

U.S. stocks settled lower on Thursday, with the Nasdaq Composite falling more than 200 points during the session amid higher oil prices.

A lack of progress in the U.S.-Iran standoff rekindled risk-off flows, pushing oil prices higher and igniting a defensive rotation that hammered tech. President Donald Trump on Thursday ordered the U.S. Navy to target any vessels laying mines in the Strait of Hormuz, adding that minesweepers were clearing the waterway.

In earnings, shares of IBM ( IBM ) and ServiceNow Inc. ( NOW ) tumbled around 8% and almost 18%, respectively, after the companies reported results for the latest quarter. United Rentals Inc. ( URI ) shares jumped 23% after the company reported better-than-expected first-quarter financial results and raised its FY26 sales guidance.

On the economic data front, the S&P Global flash U.S. Composite PMI rose to 52 in April from 50.3, a three-month high, while the Manufacturing PMI jumped to 54.0, its strongest reading since May 2022. U.S. initial jobless claims climbed by 6,000 to 214,000 in the week ending April 18, compared to market estimates of 212,000.

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

The Dow Jones closed lower by around 180 points to 49,310.32 on Thursday. The S&P 500 dipped 0.41% to 7,108.40, while the Nasdaq Composite dipped 0.89% at 24,438.50 during Thursday's session.

Investors are awaiting earnings results from Charter Communications Inc. ( CHTR ) , Procter & Gamble Co. ( PG ) and Slb NV ( SLB ) today.

What Is CNN Business Fear & Greed Index?

At a current reading of 66.3, the index remained in the “Greed” zone on Thursday, versus a prior reading of 68.6.

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.