The CNN Money Fear and Greed index showed some increase in the overall fear level, while the index remained in the “Extreme Fear” zone on Thursday.

U.S. stocks settled lower on Thursday, with the Nasdaq Composite falling more than 500 points during the session as crude oil prices rose sharply following Iran's rejection of Washington's latest ceasefire proposal.

The White House confirmed it transmitted a 15-point peace plan to Tehran via Pakistan and maintained that talks were ongoing, but Iranian officials publicly rejected any direct negotiations, countering instead with a five-point framework that would grant Tehran sovereign control over the Strait of Hormuz.

In earnings, Commercial Metals Co. ( CMC ) reported fiscal second-quarter results Thursday that missed adjusted EPS estimates but beat on revenue. Shares of Navan Inc ( NAVN ) jumped 43% on Thursday after the company reported better-than-expected fourth-quarter financial results and issued first-quarter sales guidance above estimates.

On the economic data front, U.S. initial jobless claims increased by 5,000 from the previous month to 210,000 during the third week of March, in line with the median market estimates.

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

The Dow Jones closed lower by around 469 points to 45,960.11 on Thursday. The S&P 500 fell 1.74% to 6,477.16, while the Nasdaq Composite dipped 2.38% at 21,408.08 during Thursday's session.

Investors are awaiting earnings results from Legence Corp. ( LGN ) , Carnival Corp. ( CCL ) and SBC Medical Group Holdings Inc. ( SBC ) today.

What Is CNN Business Fear & Greed Index?

At a current reading of 18.2, the index remained in the “Extreme Fear” zone on Thursday, versus a prior reading of 18.9.

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.