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

U.S. stocks settled lower on Thursday, with the Dow Jones index falling almost 600 points during the session. Software stocks also dipped for an eighth straight session on Thursday.

On the economic data front, U.S. job openings declined by 386,000 to 6.542 million in December, compared to market estimates of 7.2 million. U.S. initial jobless claims increased by 22,000 from the previous week to 231,000 during the last week of January, compared to market estimates of 212,000.

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

The Dow Jones closed lower by around 593 points to 48,908.72 on Thursday. The S&P 500 fell 1.23% to 6,798.40, while the Nasdaq Composite dipped 1.59% at 22,540.59 during Thursday's session.

What Is CNN Business Fear & Greed Index?

At a current reading of 33, the index remained in the “Fear” zone on Thursday, versus a prior reading of 39.7.

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.

Photo courtesy: Shutterstock