Monday's trading session captured the nervous mood gripping Wall Street right now. The Dow dropped 557 points, and if you're wondering what investors are so worried about, well, the CNN Fear and Greed Index has some thoughts on that. Spoiler: it's fear.
The index slipped to 14.7 on Monday, down from 21.5 previously, planting itself firmly in "Extreme Fear" territory. That's the kind of reading that tells you investors aren't just cautious—they're genuinely spooked. And it makes sense. After the government shutdown ended, markets are bracing for a deluge of delayed economic data. Plus, NVIDIA Corp. (NVDA) reports earnings on Wednesday, and given the stock's influence on the broader tech sector, that's the kind of event that keeps traders up at night.
The Dow Jones closed at 46,590.24, down those 557 points. The S&P 500 fell 0.92% to 6,672.41, and the Nasdaq Composite declined 0.84% to 22,708.07. It was a broad selloff, with most sectors bleeding red. Materials, financials, and energy stocks took the hardest hits. Communication services and utilities were the rare bright spots, managing to close higher and bucking the overall trend.
Winners and Losers
Not every stock had a miserable Monday. Alphabet Inc. (GOOGL) (GOOG) jumped to a fresh record high after news broke that Berkshire Hathaway had disclosed a new stake in the company—17.85 million shares valued at roughly $4.93 billion as of September 30. When Warren Buffett's firm takes a position like that, people notice.
On the flip side, Dell Technologies Inc. (DELL) had a rough day, sliding more than 8% after Morgan Stanley slashed its price target from $140 to $110. That's the kind of analyst call that stings, and investors didn't stick around to debate the details.
What Comes Next
Looking ahead, earnings season continues to churn along. Investors are waiting on results from Home Depot Inc. (HD), Medtronic PLC (MDT), and Aecom (ACM) today. Each report adds another data point to help gauge whether corporate America is holding up amid economic uncertainty.
Understanding the Fear and Greed Index
If you're not familiar with the CNN Business Fear and Greed Index, here's the quick version: it measures current market sentiment based on the idea that fear drives stock prices down, while greed pushes them up. The index uses seven equal-weighted indicators and runs on a scale from 0 to 100. Zero means maximum fear, 100 signals maximum greed. At 14.7, we're pretty close to the panic end of the spectrum.
The index gives a useful snapshot of the emotional temperature in markets. And right now, that temperature is cold. Whether the fear proves justified depends largely on what the economic data shows and how companies like Nvidia perform when they report earnings. Until then, expect volatility.