Dow Dips Over 600 Points, S&P 500 Sees Worst Session Since December

The financial markets experienced a significant downturn on Monday, with the CNN Money Fear and Greed index remaining firmly in the "Extreme Fear" zone. This reflects widespread anxiety among investors about the current state of the market.

During the trading session, U.S. stocks closed lower, with the Dow Jones Industrial Average falling by more than 600 points. The decline impacted investor confidence, leading to the S&P 500 posting its worst performance since December.

The decline in the market coincided with an announcement from U.S. President Donald Trump regarding new tariffs. He stated plans to impose a 25% tariff on imports from Canada and Mexico, along with a 20% tariff on goods from China, with enforcement beginning on Tuesday.

Most sectors within the S&P 500 finished on a negative note. Information technology, energy, and consumer discretionary stocks faced the brunt of the losses. In contrast, real estate and consumer staples managed to defy the overall downward trend, closing the day with gains.

At the end of the day, the Dow Jones closed at approximately 43,191.24, down about 650 points. The S&P 500 fell by 1.76% to 5,849.72, and the Nasdaq Composite dropped by 2.64%, closing at 18,350.19.

As investors continue to monitor the situation, they are looking ahead to earnings reports from notable companies. Specifically, AutoZone, Inc., Target Corporation, and Best Buy Co., Inc. are set to report their earnings today.

Currently, the CNN Money Fear and Greed index stands at 24.4, indicating an increase in fear from the previous week, which had a reading of 20.1.

Understanding the CNN Business Fear & Greed Index

The Fear & Greed Index serves as a barometer for market sentiment. It is based on the idea that heightened fear can lead to lower stock prices, while increased greed can drive prices higher. The index is derived from seven different indicators, each equally weighted to assess overall sentiment. Its scale ranges from 0 to 100, where 0 signifies extreme fear and 100 indicates extreme greed.

Dow, S&P500, Fear