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 mostly lower on Thursday, with the Dow Jones falling around 10 points during the session after producer inflation posted its largest increase in three years.

The headline Producer Price Index (PPI) jumped 0.9% in July, the steepest monthly gain since June 2022, lifting the annual rate to 3.3%. Both figures far exceeded economists’ forecasts of 0.2% and 2.9%, respectively.

Shares of Deere & Co. ( DE ) fell 7% on Thursday after the company reported third-quarter financial results and lowered its FY25 net income outlook. Shares of Kimball Electronics Inc. ( KE ) jumped around 18% during Thursday's session after the company reported better-than-expected quarterly financial results.

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

The Dow Jones closed lower by around 11 points to 44,911.26 on Thursday. The S&P 500 rose 0.03% to 6,468.54, while the Nasdaq Composite slipped 0.01% to 21,710.67 during Thursday's session.

Investors are awaiting earnings results from Flowers Foods Inc ( FLO ). and T1 Energy Inc. ( TE ) today.

What is CNN Business Fear & Greed Index?

At a current reading of 63.5, the index remained in the “Greed” zone on Thursday, versus a prior reading of 64.8.

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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