Dow Jones Surges as Market Sentiment Remains in “Greed” Zone

The CNN Money Fear and Greed index indicated an enhancement in the market sentiment on Monday, staying in the “Greed” zone. U.S. stocks concluded the day on a positive note, observing the Dow Jones index surge over 200 points during the session. The 30-stock blue-chip index displayed a growth of about 1.6% in the previous week. Market predictions after the assassination incident at Donald Trump’s rally in Butler, Pennsylvania, revealed a 72% likelihood of the tycoon winning the 2024 elections.

On the economic aspect, the NY Empire State Manufacturing Index exhibited a drop to a reading of -6.6 in July, in comparison to the market forecasts of -6. Goldman Sachs Group Inc. GS showed better-than-expected results for the second quarter. Conversely, BlackRock, Inc. BLK experienced a decline in shares after reporting the second-quarter FY24 results. Many sectors on the S&P 500 portrayed positive performance, with notable gains observed in energy, financials, and industrial stocks on Monday. However, utilities and consumer staples stocks deviated from the overall market trend, closing the session on a lower note. The Dow Jones concluded the day with a rise of over 210 points, reaching 40,211.72 on Monday.

Investors are in anticipation of the earnings outcomes from Bank of America Corporation BAC, Morgan Stanley MS, and UnitedHealth Group Incorporated UNH. The CNN Business Fear & Greed Index disclosed a reading of 62 on Monday, remaining in the “Greed” zone, compared to the prior rating of 58.2. This index serves as an indicator of the current market sentiment, relying on the belief that heightened fear impacts stock prices unfavorably, while increased greed impacts them positively. The index, with values ranging from 0 to 100, signifies the shift from maximum fear to maximum greediness, influencing market movements accordingly.