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Benzinga
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Nasdaq Dips Over 300 Points: Investor Sentiment Declines, Fear Index Remains In 'Greed' Zone

1. Fear and Greed index shows decreased sentiment but remains in 'Greed' zone. 2. S&P 500 fell 0.59% amid investor profit-taking after recent rallies. 3. U.S. housing starts rose 5.2%, signaling some economic strength. 4. Technology and communication services stocks underperformed while others gained. 5. Investors await earnings from major retailers TJX, TGT, and LOW.

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FAQ

Why Bearish?

The S&P 500 is experiencing profit-taking after a long rally, indicating potential short-term weakness. Historical trends show that such sentiment shifts often precede deeper corrections.

How important is it?

The Fear and Greed index's changes and profit-taking can impact investor behavior, influencing the S&P 500. Given the current declines and focus on earnings, it is relevant.

Why Short Term?

The market is reacting to immediate sentiment changes; this is often temporary. Profit-taking and waiting for earnings can lead to short-term volatility.

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