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Market Sentiment Swings Into Greed Territory As S&P 500 Extends Winning Streak

MarketDash Editorial Team
10 hours ago
The Fear and Greed Index crossed into greed territory on Monday as U.S. stocks posted their third consecutive day of gains, with the S&P 500 rising 0.64% and materials, industrials, and financials leading the advance.

Investor sentiment is looking decidedly cheerier these days. The CNN Money Fear and Greed Index pushed into "Greed" territory on Monday, reaching a reading of 56 compared to 49.7 previously. That shift from neutral to greedy coincided with another solid day for U.S. stocks, as major indexes extended their recent run.

The S&P 500 climbed 0.64% to 6,878.49, notching its third straight session of gains. The Dow Jones Industrial Average added roughly 228 points to close at 48,362.68, while the Nasdaq Composite jumped 0.52% to 23,428.83. Not bad for the week before Christmas.

Speaking of the holidays, traders should note that the New York Stock Exchange will close early at 1 p.m. ET on Wednesday and remain shuttered on Thursday for Christmas Day.

On the deal front, UniFirst Corp. (UNF) disclosed that it received an acquisition proposal from Cintas Corp. (CTAS) offering $275 per share in cash. That's the kind of news that gets attention in an otherwise quiet holiday-shortened week.

Economic data provided a modest backdrop, with the Chicago Fed National Activity Index improving to -0.21 in September from -0.31 in August. It's still negative, but heading in the right direction.

Monday's market gains were broad but not universal. Most sectors on the S&P 500 closed higher, with materials, industrials, and financials stocks posting the biggest advances. Consumer staples were the notable exception, bucking the trend and finishing the session lower.

Looking ahead, investors are awaiting earnings results from Limoneira Co. (LMNR) and Good Times Restaurants Inc. (GTIM) today.

Understanding the Fear & Greed Index

The Fear & Greed Index is essentially a mood ring for the stock market. The premise is straightforward: excessive fear tends to push stock prices down, while excessive greed drives them higher. The index calculates market sentiment using seven equal-weighted indicators, producing a reading between 0 and 100. Zero represents maximum fear, while 100 signals maximum greediness. The current reading of 56 puts us solidly in greed territory, suggesting investors are feeling more confident and perhaps a bit more willing to take on risk.

Back to Stock Market News

Market Sentiment Swings Into Greed Territory As S&P 500 Extends Winning Streak

MarketDash Editorial Team
10 hours ago
The Fear and Greed Index crossed into greed territory on Monday as U.S. stocks posted their third consecutive day of gains, with the S&P 500 rising 0.64% and materials, industrials, and financials leading the advance.

Investor sentiment is looking decidedly cheerier these days. The CNN Money Fear and Greed Index pushed into "Greed" territory on Monday, reaching a reading of 56 compared to 49.7 previously. That shift from neutral to greedy coincided with another solid day for U.S. stocks, as major indexes extended their recent run.

The S&P 500 climbed 0.64% to 6,878.49, notching its third straight session of gains. The Dow Jones Industrial Average added roughly 228 points to close at 48,362.68, while the Nasdaq Composite jumped 0.52% to 23,428.83. Not bad for the week before Christmas.

Speaking of the holidays, traders should note that the New York Stock Exchange will close early at 1 p.m. ET on Wednesday and remain shuttered on Thursday for Christmas Day.

On the deal front, UniFirst Corp. (UNF) disclosed that it received an acquisition proposal from Cintas Corp. (CTAS) offering $275 per share in cash. That's the kind of news that gets attention in an otherwise quiet holiday-shortened week.

Economic data provided a modest backdrop, with the Chicago Fed National Activity Index improving to -0.21 in September from -0.31 in August. It's still negative, but heading in the right direction.

Monday's market gains were broad but not universal. Most sectors on the S&P 500 closed higher, with materials, industrials, and financials stocks posting the biggest advances. Consumer staples were the notable exception, bucking the trend and finishing the session lower.

Looking ahead, investors are awaiting earnings results from Limoneira Co. (LMNR) and Good Times Restaurants Inc. (GTIM) today.

Understanding the Fear & Greed Index

The Fear & Greed Index is essentially a mood ring for the stock market. The premise is straightforward: excessive fear tends to push stock prices down, while excessive greed drives them higher. The index calculates market sentiment using seven equal-weighted indicators, producing a reading between 0 and 100. Zero represents maximum fear, while 100 signals maximum greediness. The current reading of 56 puts us solidly in greed territory, suggesting investors are feeling more confident and perhaps a bit more willing to take on risk.