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Benzinga
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Dow Tumbles Around 800 Points On US Government Reopening Day; Investor Fear Increases, Greed Index Moves To 'Extreme Fear' Zone

1. Fear and Greed Index shows extreme fear at 24.3, impacting stock prices. 2. S&P 500 dropped 1.66% amid negative sentiment and expectations of Fed rate hikes. 3. Walt Disney missed revenue targets, falling 8%; Cisco rose 4.6% post-positive guidance. 4. Most sectors fell, particularly consumer discretionary and tech; energy stocks increased. 5. Dow Jones fell nearly 800 points, indicating broader market downturn.

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FAQ

Why Bearish?

The decrease in the Fear and Greed Index indicates heightened investor anxiety, often leading to stock selling. Historically, market corrections often follow substantial fear signals, like in early 2020 and 2008, which adversely affected S&P 500 valuations.

How important is it?

Investor sentiment and earnings misses directly affect S&P 500 movements and market outlook. High fear levels and substantial market drops indicate a shaky environment impacting various sectors.

Why Short Term?

Investor sentiment can quickly shift, especially with earnings reports pending. The extreme fear level likely leads to immediate sell-offs, making short-term impacts more pronounced.

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