Nasdaq Settles Lower Amid Decline In Mega-Caps: Investor Fear Increases, Greed Index Remains In ‘Fear’ Zone – Microsoft (NASDAQ:MSFT)

The CNN Money Fear and Greed index showed an increase in the overall fear level, while the index remained in the “Fear” zone on Thursday.

U.S. stocks settled lower on Thursday, with the Nasdaq Composite dipping more than 350 points during the session, weighed down by mixed earnings from the mega-caps and the lingering impact of hawkish remarks from Fed Chair Jerome Powell the day before.

The central bank, on Wednesday, lowered rates by 25 basis points to 3.75%-4.00% for the second straight meeting. Fed Chair Jerome Powell cautioned that another cut is “not a foregone conclusion—far from it,” pushing back against expectations that had built up across financial markets in recent weeks.

Meta Platforms Inc. (NASDAQ:META) shares dipped more than 11% on Thursday after the company unveiled hefty new AI-related capital spending. Microsoft Corp. (NASDAQ:MSFT) fell nearly 3% despite topping analysts’ expectations, while Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL) surged 2.5%.

Most sectors on the S&P 500 closed on a negative note, with consumer discretionary, communication services and information technology stocks recording the biggest losses on Thursday. However, real estate and financial stocks bucked the overall market trend, closing the session higher.

The Dow Jones closed lower by around 110 points to 47,522.12 on Thursday. The S&P 500 dipped 0.99% to 6,822.34, while the Nasdaq Composite fell 1.57% to 23,581.14 during Thursday’s session.

Investors are awaiting earnings results from Exxon Mobil Corp. (NYSE:XOM), Chevron Corp. (NYSE:CVX) and Colgate-Palmolive Co. (NYSE:CL) today.

What is CNN Business Fear & Greed Index?

At a current reading of 37.1, the index remained in the “Fear” zone on Thursday, versus a prior reading of 40.4.

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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