The CNN Money Fear and Greed index showed further improvement in the overall market sentiment, while the index moved to the “Fear” zone on Monday.

U.S. stocks settled higher on Monday, with the Dow Jones index jumping nearly 600 points during the session. The broad-market S&P 500 reported gains last week after recording losses for four straight weeks. The Nasdaq gained 0.2%, while the Dow added 1.2% during the week.

President Donald Trump's softer tone on potential tariffs ahead of the looming April 2, 2025 deadline helped calm nerves. Adding to the optimism, fresh business surveys showed a strong rebound in services activity in March, easing recession worries.

The Chicago Fed National Activity Index rose to 0.18 in February versus a reading of -0.08 in January. The S&P Global services PMI climbed to 54.3 in March from 51 in February. The S&P Global US Manufacturing PMI declined to 49.8 in March versus 52.7 in the previous month.

Shares of Tesla Inc. ( TSLA ) , which have dipped for nine consecutive weeks, gained around 12% on Monday. Meta Platforms Inc. ( META ) and Nvidia Corp. ( NVDA ) each jumped more than 3% during the session.

Most sectors on the S&P 500 closed on a positive note, with consumer discretionary, communication services, and industrials stocks recording gains on Monday. However, utility stocks bucked the overall market trend, closing the session slightly lower.

The Dow Jones closed higher by around 598 points to 42,583.32 on Monday. The S&P 500 rose 1.76% to 5,767.57, while the Nasdaq Composite climbed 2.27% at 18,188.59 during Monday's session.

Investors are awaiting earnings results from Core & Main, Inc ( CNM ). , GameStop Corp ( GME ). , and Worthington Enterprises Inc. ( WOR ) today.

What is CNN Business Fear & Greed Index?

At a current reading of 27.9, the index moved to the “Fear” zone on Monday, versus a prior reading of 23.4.

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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