The CNN Money Fear and Greed index showed a decline in the overall market sentiment, while the index remained in the “Greed” zone on Monday.

U.S. stocks settled lower on Monday, with the Dow Jones index falling more than 550 points during the session after an Iranian drone strike on a UAE oil facility sent Brent crude above $114 a barrel, increasing expectations of a Federal Reserve rate hike by March 2027.

In earnings, Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) posted upbeat earnings for the first quarter, but lowered its FY2026 forecast. Tyson Foods Inc. (NYSE:TSN) posted better-than-expected earnings for the second quarter on Monday.

On the economic data front, U.S. factory orders increased 1.5% month-over-month to $630.4 billion in March, topping market estimates of 0.5% and compared to a revised 0.3% gain in February.

Most sectors on the S&P 500 closed on a negative note, with materials, consumer staples and industrials stocks recording the biggest losses on Monday. However, energy stocks bucked the overall market trend, closing the session higher.

The Dow Jones closed lower by around 557 points to 48,941.90 on Monday. The S&P 500 fell 0.41% to 7,200.75, while the Nasdaq Composite fell 0.19% at 25,067.80 during Monday's session.

Investors are awaiting earnings results from Pfizer Inc. (NYSE:PFE), PayPal Holdings Inc. (NASDAQ:PYPL) and Advanced Micro Devices Inc. (NASDAQ:AMD) today.

What is CNN Business Fear & Greed Index?

At a current reading of 62.9, the index remained in the “Greed” zone on Monday, versus a prior reading of 66.1.

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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