The CNN Money Fear and Greed index showed some 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 S&P 500 recording losses following a decline in Tesla Inc. ( TSLA ) shares.

Ciena Corp. ( CIEN ) shares dipped 13% on Thursday after the company reported downbeat earnings for its fiscal second quarter. PVH Corp. ( PVH ) tumbled 18% after the company cut its FY25 guidance below estimates and issued second-quarter adjusted EPS guidance below estimates.

On the economic data front, unit labour costs in the US nonfarm business sector rose 6.6% during the first quarter, while nonfarm business sector labor productivity in the U.S. declined by 1.5% in the first quarter. The U.S. trade gap shrank to $61.6 billion in April, recording the lowest level since September 2023.

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

The Dow Jones closed lower by around 108 points to 42,319.74 on Thursday. The S&P 500 fell 0.53% to 5,939.30, while the Nasdaq Composite dipped 0.83% to 19,298.45 during Thursday's session.

Investors are awaiting earnings results from ABM Industries Inc. ( ABM ) , G-III Apparel Group Ltd. ( GIII ) and Manchester United plc ( MANU ) today.

What is CNN Business Fear & Greed Index?

At a current reading of 58.3, the index remained in the “Greed” zone on Thursday, versus a prior reading of 59.1.

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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